Amendment to State Flood Mitigation Board Funding Agreement_Bee Branch Watershed_Resolution Copyrighted
June 21, 2017
City of Dubuque Consent Items # 1.
ITEM TITLE: Amendment to State Flood Mitigation Board Funding
Agreement for the Bee Branch Watershed Flood Mitigation
Project
SUMMARY: City Manager recommending approval to amend the State
Flood Mitigation Board Funding Agreement for the Bee
Branch Watershed Flood Mitigation Project.
RESOLUTION Authorizing an Amendment to the Funding
Agreement between the City of Dubuque and the State of
Iowa Flood Mitigation Board for 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
Request Letter Supporting Documentation
Exhibit B Supporting Documentation
Resolution Resolutions
THE CITY OF ¶fi
DUBE
Masterpiece on the Mississippi 2007.2012.2010
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Amendment to State Flood Mitigation Board Funding Agreement for the
Bee Branch Watershed Flood Mitigation Project
DATE: June 20, 2017
City Engineer Gus Psihoyos recommends City Council approval to amend the State
Flood Mitigation Board Funding Agreement for the Bee Branch Watershed Flood
Mitigation Project.
Recently, the City of Cedar Falls reached out to the City of Dubuque seeking help.
They believe that their sales tax growth in Fiscal Year 2017 will not grow as originally
projected, preventing them from collecting approximately $700,000 in sales tax
increment funding from the state. And the State Flood Mitigation Board (Board) would
not have the ability to re-allocate the funding later on as the Board has already allocated
the maximum they can in subsequent years. This is where the City of Dubuque may be
able to help.
In contrast to Cedar Falls, sales tax collections in the City of Dubuque have exceeded
the projections outlined in the City's original application. It is possible the City will
generate enough sales tax increment in Fiscal Year 2017 to support the City's receipt of
additional funding. The proposal to the Board will be to shift up to $700,000 in Fiscal
Year 2017 sales tax increment from the City of Cedar Falls to the City of Dubuque and
in Fiscal Year 2019 to shift a corresponding amount from the City of Dubuque to the
City of Cedar Falls.
The amendment will take into consideration that the amount shifted will be limited to the
actual sales tax increment generated in the City of Dubuque above and beyond what
the City is currently programmed to receive. Hence, the "up to $700,000" language.
Essentially, the City will not lose out on sales tax increment funding as a result of the
proposed amendment.
This amendment will not modify the total sales tax increment funding available for the
City's use. It would simply accelerate the City's receipt of up to $700,000, shifting it
from Fiscal Year 2019 to Fiscal Year 2017.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
/ 7iIt/L JGt�t
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Gus Psihoyos, City Engineer
2
Dubuque
THE CITY OF
heal
DUB E 'Iv Clly
Masterpiece on the Mississippi 2007.2012.2013
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
DATE: June 20, 2017
SUBJECT: Amendment to State Flood Mitigation Board Funding Agreement for the
Bee Branch Watershed Flood Mitigation Project
INTRODUCTION
The purpose of this memorandum is to request approval to amend the State Flood
Mitigation Board Funding Agreement for the Bee Branch Watershed Flood Mitigation
Project.
BACKGROUND
In 2012, the State of Iowa Flood Mitigation Program (Program) was created. It
established that sales tax increment collected in a City can be used to fund flood
mitigation projects. 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. 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 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 12-phase 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 the financing plan utilizing sales tax
increment funds.
On December 4, 2013, the Iowa Flood Mitigation Board approved the City's application
and the City's 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 a funding 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. The sales tax increment is to be distributed to the City based on a set schedule
over a twenty-year period as outlined in the City's Project Plan and as reflected in the
funding agreement.
In April of 2015, the City Council adopted Resolution 138-15 authorizing an amendment
to the funding agreement with the Iowa Flood Mitigation Board that provided for the City
to receive an additional $5 million in sales tax increment in Fiscal Years 2014 through
2018 offset by a reduction of$5 million in sales tax increment in Fiscal Years 2031
through 2033.
On June 19, 2017, the City Council approved seeking an amendment to the State Flood
Mitigation Board Funding Agreement in order to secure up to $700,000.00 in additional
sales tax increment funding in FY2017 offset by a corresponding decrease in FY2019
for the Bee Branch Watershed Flood Mitigation Project.
DISCUSSION
The legislation establishing the State Flood Mitigation Program (Program) and the
subsequent amendments to the Iowa Code enacting the Program established limitations
on a city's use of sales tax increment. A city is only eligible to use state sales tax
increment funding if the sales tax collections within the city actually grow.
Recently, the City of Cedar Falls reached out to the City of Dubuque seeking help. They
believe that their sales tax growth in FY17 will not grow as originally projected,
preventing them from collecting approximately $700,000 in sales tax increment funding
from the state. And the State Flood Mitigation Board (Board) would not have the ability
to re-allocate the funding later on as the Board has already allocated the maximum they
can in subsequent years. This is where the City of Dubuque may be able to help.
In contrast to Cedar Falls, sales tax collections in the City of Dubuque have exceeded
the projections outlined in the City's original application. There is the possibility that the
City will generate enough sales tax increment in FY17 that would support the City's
receipt of additional funding. The proposal to the Board will be to shift up to $700,000 in
FY17 sales tax increment from the City of Cedar Falls to the City of Dubuque and shift a
corresponding amount in FY19 from the City of Dubuque to the City of Cedar Falls.
The amendment will take into consideration that the amount shifted will be limited to the
actual sales tax increment generated in the City of Dubuque above and beyond what
the City is currently programmed to receive. Hence, the "up to $700,000" language.
Essentially, the City will not lose out on sales tax increment funding as a result of the
proposed amendment.
This amendment will not modify the total sales tax increment funding available for the
City's use. It would simply accelerate the City's receipt of up to $700,000, shifting it from
FY19 to FY17.
2
RECOMMENDATION
I recommend that the City amend the State Flood Mitigation Board Funding Agreement
in order to secure up to $700,000.00 in additional sales tax increment funding in
FY2017 offset by a corresponding decrease in FY2019 for the Bee Branch Watershed
Flood Mitigation Project.
BUDGET IMPACT
If realized, the use of the additional sales tax increment funding would be considered as
part of an amendment to the Fiscal Year 2018 Storm Water Utility Fund Budget and
further reflected in the upcoming FY19-FY23 Capital Improvement Program Budget.
REQUESTED ACTION
I respectfully request adoption of the attached resolution approving an amendment to
the State Flood Mitigation Board Funding Agreement in order to secure up to
$700,000.00 in additional sales tax increment funding in FY2017 offset by a
corresponding decrease in FY2019 for the Bee Branch Watershed Flood Mitigation
Project.
Prepared by Deron Muehring
Cc: Crenna Brumwell, City Attorney
Jennifer Larson, Budget Director
Teri Goodmann, Assistant City Manager
Alexis Steger, Senior Budget Analyst
Deron Muehring, Civil Engineer
3
ue
Dubuq
THE CITY OF City Manager's Office
City Hall
UBR All-America City 50 West 13"'Street
1 I I ic I ' Dubuque,Iowa 52001-4805
Office(563)589-4110
Masterpiece on the Mississippi Fax(563)589-4149
2007•2012•2013 TTY(563)690-6678
ctymgr@cityofdubuque.org
www.cityofdubuque.org
June 20, 2017
Carol Tomb
Hazard Mitigation Project Officer - Infrastructure
Iowa Department of Homeland Security and Emergency Management.
7900 Hickman Rd., Suite 500
Windsor Heights, IA 50324
VIA EMAIL
RE: State Flood Mitigation Program, Proposed Amendment#2 to Agreement 2013-0
Dear Ms. Tomb,
The purpose of this letter is to seek an amendment to the funding agreement between
the Flood Mitigation Board and the City of Dubuque related to the City's use of state
sales tax revenues for the Bee Branch Watershed Flood Mitigation Project. Specifically,
the City is requesting changes to Exhibit B, the schedule of remittances for the use of
sales tax revenues.
The City of Dubuque was contacted by the City of Cedar Falls due to a potential
shortage of sales tax increment for the City of Cedar Falls in FY 2017. The City of
Dubuque has analyzed its projected sales tax increment for FY 2017 in an to attempt to
assist the City of Cedar Falls. Although the City of Dubuque may generate sales tax
increment in excess of what it projected in Amendment#1, it is uncertain that this will
occur. However, the City of Dubuque is willing to propose an amendment to the
remittance schedule for 2017 and 2019 that is contingent upon the City of Dubuque
generating up to $700,000 sales tax increment in FY 2017 in excess of what is
projected in Amendment#1. If the City generates $700,000 in excess increment in FY
2017, then the City's requested remittance for FY 2019 would be reduced by $700,000
to the amount shown on proposed amendment #2 ($3,692,361). However, if the excess
increment in FY 2017 is less than $700,000, the difference between the actual excess
increment for FY 2017 and $700,000 would be added to the remittance request for FY
2019 as approved in Amendment #1 ($4,392,361).
As outlined in the City's Project Plan, the City purposefully limited its yearly requests by
proposing to spread the construction of project phases over several years in order to
both limit borrowing and allow for the availability of more sales tax increment for other
Iowa communities that may have funding requests through the state flood mitigation
program. The City remains cognizant of the limits placed on the sales tax increment
funding that the Board can allocate per year. Approving the City's amendment will
continue to provide the Board with the flexibility to assist cities that may not be
generating as much sales tax increment as needed in the early years of the Flood
Mitigation Program by freeing up excess increment in later years.
The City of Dubuque respectfully requests amending Exhibit B of funding Agreement
2013-0 as set forth in the attached Proposed Amendment #2 to reflect the proposed
revised sales tax increment remittance schedule contingent on the City's ability to
generate the additional $700,000 in excess sales tax increment in FY 2017.
Thank you in advance for your assistance.
Sincerely,
/ LJ* k /' 1L
Michael C. Van Milligen
City Manager
Attachments
cc: Jennifer Larson, Budget Director
Teri Goodmann, Assistant City Manager
Gus Psihoyos, City Engineer
Deron Muehring, Civil Engineer
Alexis Steger, Confidential Account Clerk
Prepared by: Deron Muehring, City Hall, 50 W 13th Street, Dubuque IA 52001 563-589-4270
RESOLUTION NO. 229-17
AUTHORIZING AN AMENDMENT TO THE FUNDING AGREEMENT BETWEEN THE
CITY OF DUBUQUE AND THE STATE OF IOWA FLOOD MITIGATION BOARD FOR
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 $98,494,178.00 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 (Funding 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; and
WHEREAS, the City was contacted by the City of Cedar Falls due to a potential
shortage of sales tax increment for the City of Cedar Falls in FY 2017; and
WHEREAS, the City has analyzed its projected sales tax increment for FY 2017
in an attempt to assist the City of Cedar Falls; and
WHEREAS, the City may generate sales tax increment in excess of what the City
is scheduled to receive in FY 2017, but it is uncertain that this will occur; and
WHEREAS, the City is willing to propose an amendment to its remittance
schedule for 2017 and 2019 that is contingent upon the City generating up to $700,000
sales tax increment in FY 2017 in excess of what the City is scheduled to receive as
provided in the Funding Agreement; and
WHEREAS, it is in the best interest of the City to seek the use of the additional
sales tax increment in FY 2017 through an amendment to the Funding Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA AS FOLLOWS:
1. The City Council approves an amendment to the Funding Agreement as set
forth in the attached June 20, 2017 letter to Carol Tomb, Hazard Mitigation Project
Officer — Infrastructure and accompanying Exhibit B as follows:
The amendment to the remittance schedule for 2017 and 2019 shown on Exhibit
B as proposed amendment #2 is contingent upon the City of Dubuque generating
up to $700,000 sales tax increment in FY 2017 in excess of what is projected in
Amendment #1 shown on Exhibit B. If the City generates $700,000 in excess
increment in FY 2017, then the City's requested remittance for FY 2019 will be
reduced by $700,000 to the amount shown on proposed amendment #2 shown
on Exhibit B ($3,692,361). However, if the excess increment in FY 2017 is less
than $700,000, the difference between the actual excess increment for FY 2017
and $700,000 would be added to the remittance request for FY 2019 as
approved in Amendment #1 shown on Exhibit B ($4,392,361).
2. The City Manager is authorized and directed to take further action as is
necessary to finalize and implement the amendment.
Passed, approved and adopted this 21st day of June, 2017.
D.
Roy D. BI, Mayor
Attest:
Ke in S. Firnsta"l, City'Clerk
EXHIBIT B
CITY OF DUBUQUE CITY OF DUBUQUE
Flood Mitigation Program Flood Mitigation Program
Approved Amendment#1 Proposed Amendment#2 submitted June 2017
_
SALES TAX INCREMENT PROJECTIONS SALES TAX INCREMENT PROJECTIONS
YEAR AMOUNT YEAR AMOUNT
2014 $ 395,704 2014 $ 395,704
2015 $ 2,655,058 2015 $ 2,655,058
2016 $ 3,476,709 2016 $ 3,476,709
2017 $ 4,316,027 2017 $ 5,016,027 *
2018 $ 5,173,389 2018 $ 5,173,389
2019 $ 4,392,361 2019 $ 3,692,361 *
2020 $ 5475,452 2020 $ 5,175,452
2021 $ 5,973,893 2021 $ 5,973,893
2022 $ 6,787,982 2022 $ 6,787,982
2023 $ 6,944,414 2023 $ 6,944,414
2024 $ 6,968,288 2024 $ 6,968,288
2025 $ 6,946,514 2025 $ 6,946,514
2026 $ 6,957,577 2026 $ 6,957,577
2027 $ 6,947,487 2027 $ 6,947,487
2028 $ 6,947,500 2028 $ 6,947,500
2029 $ 6,500,000 2029 $ 6,500,000
2030 $ 6,000,000 2030 $ 6,000,000
2031 $ 2,935,823 2031 $ 2,935,823
2032 $ 1,500,000 2032 $ 1,500,000
2033 $ 1,500,000 2033 $ 1,500,000
2034 2034
2035 2035
TOTAL $ 98,494,178I TOTAL $ 98,494,178
*Contingent upon the City of Dubuque generating up to$700,000 sales tax increment in FY 2017 in excess
of what is projected in Amendment#1. If the City generates$700,000 in excess increment in FY 2017,then
the City's requested remittance for FY 2019 would be reduced by$700,000. However, if the excess
increment in FY 2017 is less than $700,000,the difference between the actual excess increment and
$700,000 shall be added to the FY2019 requested amount as approved in Amendment#1.
RESOLUTION NO. 20,616
RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF AN AMENDMENT
TO THE FLOOD MITIGATION AGREEMENT 2014-0 BETWEEN THE CITY OF
CEDAR FALLS AND THE FLOOD MITIGATION BOARD FOR THE USE OF SALES
TAX INCREMENT REVENUES FOR THE DOWNTOWN LEVEE PROJECT
WHEREAS, the City Council of the City of Cedar Falls, Iowa on March 24, 2014
approved submission of an application to the Iowa Flood Mitigation Board requesting
approval for the use of sales tax revenues through the State of Iowa Flood Mitigation
Program for the Downtown Levee Improvement Flood Mitigation Project, and
WHEREAS, the City has determined that projections for the timing of revenues
and expenses related to that project have changed since that initial application, and
WHEREAS, the City has been working with the City of Dubuque to exchange
funds from 2017 to 2019 in an amount not to exceed $700,000 and to request funds of
$762,221.13 that were not received in 2014 be moved to 2034, and
WHEREAS, the City is not changing the total amount requested ($6,625,000.00)
that was approved in the original application and that the City Council of the City of
Cedar Falls, Iowa deems it in the best interest of the City of Cedar Falls, Iowa to
approve and authorize execution of this amendment request for the use of sales tax
increment revenues for the Downtown Levee Improvement Flood Mitigation project.
NOW THEREFORE, be it resolved by the City Council of the City of Cedar Falls,
Iowa, that said amendment is hereby approved and the City Administrator is authorized
to execute this amendment on behalf of the City of Cedar Falls, Iowa.
ADOPTED this 22nd day of June 2017.
ATTEST: ADA?
'A/ rc
line Danielsen, CMC, City Clerk
James P. Brown, Mayor
EXHIBIT B (Amended #1)
CITY OF CEDAR FALLS
Flood Mitigation Program
SALES TAX USE PROJECTIONS
ORIGINAL AMOUNT approved
YEAR 2/28/14
Proposed Amended #1
submitted June 2017.
2014 $ 580,134.00 $
2015 $ 1,177,673.00 $
2016 $ 1,793,137.00
2017 $ 2,427,065.00
2018 $ 646,991.00
2019 $ - $
2020 $ - $
2021 $ - $
2022 $ - $
2023 $ - $
2024 $ $
2025 $ - $
2026 $ - $
2027 $ - $
2028 $ - $
2029 $ - $
2030 $ $
2031 $ - $
2032 $ - $
2033 $ $
2034 $
2035 $ - $
TOTAL $ 6,625,000.00 $
995,585.86
1,793,137.01
$ 1,727,065.00
646,991.00
700,000.00
$ 762,221.13
6,625,000.00
*
*This amount is contingent upon the amount that the City of Dubuque is able to generate. If this
amount is Tess than $700,000, then the exchange amount in FY19 would change by the exact amount.
The City of Cedar Falls would then move the amount that is less than $700,000 to FY34.
1
Kevin Firnstahl
From:Deron Muehring
Sent:Friday, July 14, 2017 9:23 AM
To:Kevin Firnstahl
Subject:Agreement, Amendment No 2, State Flood Mitigation Board
Attachments:Agreement, Amendment No 2, executed.pdf
Kevin,
Attached is the executed amendment no 2 to the agreement with the State Flood Mitigation Board. It is associated with
Resolution 229‐17 adopted by the City Council during a special session on June 21.
Do you want an original paper copy?
Deron
Deron L. Muehring, Civil Engineer
City of Dubuque, IA
50 W. 13th Street
Dubuque, IA 52001
P: 563‐589‐4276
F: 563‐589‐4205
Imagine Dubuque! Have you shared your ideas to make Dubuque a more viable, livable, and equitable community? To
learn more and share your ideas visit http://imaginedubuque.com or download the project app today!