State Legislative Priorities for 2010 SessionTHE CITY OF Dubuque
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Masterpiece an the Mississippi
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: City of Dubuque State Legislative Issues for the 2010 Session
DATE: November 12, 2009
Assistant City Manager Teri Goodmann has worked with City staff 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 19, 2009, at 5:30 p.m. at the Grand River Center.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micha I C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
City Of Dubuque
State Legislative Issues
For The 2010 Session
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 $50 million per year.
Dubuque has benefited from 20 state historic tax credit projects, more than any other
city in the State of Iowa, which have added far more to our financial system than a
simple single storefront project as listed above. A sample of the impact is as follows:
Project New Jobs
Security Building 90
Town Clock Building 60
Heartland Building 45
Platinum Building 110
Star Brewery 170
Cooper Wagon Works/Bricktown 65
German Bank 25
Total 565 new permanent jobs
These projects have added well over 565 permanent jobs to our economy, not including
the construction jobs to complete the large projects. These 565 people would equate to
a $19.4 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.
Requested Action:
Maintain the state historic tax credit program at the current level with a goal of removing
the cap on the historic preservation tax incentives.
Workforce Housing
The City of Dubuque supports the creation of financial incentives (grants, low interest
loans, tax credits) to fill the gaps for rehabilitating older structures through adaptive
reuse in order to expand workforce housing for growing workforce in the region.
Iowa Hiahway 32 (Southwest Arterial) -Update
The Dubuque City Council, the Dubuque County Board of Supervisors, the Dubuque
Metropolitan Area Transportation Study (DMATS), the Dubuque Area Chamber of
Commerce and the Greater Dubuque Development Corporation have all identified the
completion of the Iowa Highway 32 (Southwest Arterial) project as the No. 1 surface
transportation priority in the Dubuque area. The proposed Iowa Highway 32 (Southwest
Arterial) project will be a 6.1-mile four-lane divided freeway with priority 1-access control
between Highway 61/151 and Highway 20.
The Iowa Highway 32 (Southwest Arterial) project will provide a significant national and
regional economic benefit in providing a direct connection between the new Dubuque
Technology Park on Highway 61/151 with the new Dubuque Industrial Center West, and
the existing Dubuque Industrial Center near Highway 20. The highway then extends
north to John Deere Dubuque Works via the Iowa Highway 32 (Northwest Arterial).
Dubuque is the regional economic center for the Iowa, Illinois and Wisconsin tri-state
area. With local international companies such as the John Deere Dubuque Works,
Nordstrom Distribution Center, McGraw-Hill Publishing Company, A.Y. McDonald
Manufacturing, Flexsteel Industries, Kendall/Hunt Publishing, and the Hormel Food
Corporation, it is critical to construct the Iowa Highway 32 (Southwest Arterial) as an
alternate, direct route for commercial traffic through southwestern Dubuque. The Iowa
Highway 32 (Southwest Arterial) project will significantly improve the efficiency and
safety of the regional highway transportation network which is vital for the statewide,
national and global distribution of local commerce and the continued growth and
sustainability of the strong regional economy.
The engineering consultant, EarthTech Inc. has completed the preliminary engineering
design phase. With the preliminary engineering completed and property acquisition limits
identified, the City has the information needed to begin the property acquisition process.
In the upcoming year, the City, with the assistance of a right-of-way acquisition agent,
will start contacting impacted property owners to initiate discussions regarding the
acquisition process and the property needed to construct the Iowa Highway 32
(Southwest Arterial). The property acquisition phase is anticipated to take approximately
two years to complete.
Also in the upcoming year, the City's intends to hire a consultant to begin the final
engineering design phase of the project. The final design phase is anticipated to take
two years to complete.
The City will also begin the environmental and cultural resource mitigation phase of the
project. As properties are acquired, mitigation work will be completed prior to the start of
construction.
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Asa result of hard work from Dubuque's congressional delegation, the Federal
Transportation Bill (SAFETEA-LU) includes funding for the Iowa Highway 32 (Southwest
Arterial) in the amount of $26.18 million. The City extends its sincere appreciation to
Congressman Nussle, and U.S. Senators Grassley and Harkin for targeting this project
with federal appropriation authorization, which will play a critical role in moving forward
with this project.
The Iowa Highway 32 (Southwest Arterial) project has been part of the State TIP for the
past 10 years and continues to be because the local Metropolitan Planning Organization,
DMATS, has committed $10 million in Surface Transportation Program (STP) funds and
dedicated local Enhancement funds of approximately $550,000 through 2013 for the
project.
The Technical Corrections Bill was passed which authorized $5.5 million in unused
SAFETEA-LU funding for the U.S. 20 Bridge to be transferred of the Iowa Highway 32
(Southwest Arterial) project.
The following table summarized the appropriated federal funding to-date for the Iowa
Highway 32 (Southwest Arterial) project.
Federal Appropriations Amount
SAFETEA - LU
Highway Project Description (Section 1702) $ 15,200,000
Transportation Improvements (Section 1934) $ 4,180,000
Transportation Improvements (Section 1934) $ 6,800,000
Technical Corrections Bill (SAFETEA-LU US20 Bridge) $ 5,500,000
Federal Funding: $ 31,680,000
* After Obligation Limitation Reduction:
Total Federal Funding: $ 27,000,000
The City has met with Iowa Department of Transportation staff members several times to
emphasize the importance of the Iowa Highway 32 (Southwest Arterial) project to the
State and to the Dubuque area; however funding for the project was not included in the
Iowa DOT's Five-Year Transportation Improvement Program.
The Iowa DOT wants a local financial commitment to this project that does not include
federal funds. The Iowa DOT Commission has challenged both the City and County to
seek local funding for this project and pursue all viable options to fund the shortfall. The
Iowa Highway 32 (Southwest Arterial) continues to be a top priority, therefore, other
strategies are being evaluated to ensure that this project moves forward.
In meeting this challenge, the City has committed the use of local DMATS funding on
eligible local street construction projects which will allow local funds to be transferred to
the Iowa Highway 32 (Southwest Arterial) project and used as matching cost for the
federal funds. Staff has identified approximately $3.8 million in local funds that could be
shifted using DMATS funds which would allow the leveraging of approximately $15.2
million in federal dollars.
The following table summarized the local funding committed to-date for the Iowa
Highway 32 (Southwest Arterial) project.
Local Funding Amounf
DMATS STP Funds $ 6,200,000
DMATS Enhancement Funds $ 550,000
City -Capital Improvement Funding $ 3,800,000
TIME-21 Funding (City /County Allocation) $ 4,900,000
Total Local Funding: $ 15,450,000
The City is also seeking financial assistance through the State of Iowa Department of
Transportation Revitalize Iowa's Sound Economy (RISE) Program. The Iowa DOT has
presented a possible funding scenario to use the RISE grant program to loan $5 million
which could be used as matching funds for the federal appropriation dollars.
Due to project funding constraints, the City has been preparing cost scenarios and
evaluating construction alternatives for completing components of the project with
currently available federal, state and local funding.
An alternate interim phase under consideration would include the acquisition of all right-
of-way required for the complete four-lane project, complete the environmental and
cultural resource mitigation phases, complete final engineering design which would
provide for the grading of four-lanes between Highway 151/61 to Highway 20, pave two-
lane highway between Highway 151/61 to Highway 20, partial interchanges at Highway
151/61 and at Highway 20, and a temporary at-grade intersection at North Cascade
Road. The preliminary cost projection for the interim two-lane highway is $80,350,000.
The interim two-lane highway would function until future additional funding is available to
complete the remaining two-lanes and construct full interchanges which would fully
complete the four-lane divided freeway and should provide a reasonable level of traffic
service through the year 2015. The preliminary cost projection for the complete four-lane
freeway project is $112,000,000.
The following table summarized the project costs for the alternate interim construction
phase for the Iowa Highway 32 (Southwest Arterial) project.
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Project Costs Amount
Phase I -Cost Estimate $ 80.35 Million
• 2-Lane Highway
• Hwy 20 to Hwy 61/151
Federal Funding $ 27.0 Million
Local Funding $ 15.45 Million
Funding Gap: $ 37.9 Million
Requested Action:
The City requests any additional financial assistance that can be provided on the federal
level, as well as any assistance that can be provided to encourage the Iowa Department
of Transportation Commission to include the Iowa Highway 32 (Southwest Arterial)
project in their Five-Year Transportation Improvement Program and commit funding
toward this vital project.
The City also requests the support of additional appropriations to reduce the current
funding gap ($37.9 million) to complete the 2-lane highway between Hwy 20 and Hwy
61/151 highway.
The City requests supporting the transfer of the remaining unused Federal SAFETEA-
LU appropriation funding for the US Hwy 20 Mississippi Bridge in the amount of $20
Million, and shifting the funding to the Iowa Highway 32 (Southwest Arterial) project.
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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.
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 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.
Homestead Tax Credit
Each year the City of Dubuque tries to minimize the tax asking for the average
homeowner by not increasing, and in some years, decreasing the City's property tax
rate. The State of Iowa has created a partially unfunded mandate through the
establishment of the Homestead Tax Credit. The cost for the lack of full funding of this
credit is passed on to taxpayers and diminishes the City of Dubuque's efforts to keep
property tax rates low. The credit was funded by the State at 85% in 2003-2004, 81 % in
2004-2005, 78% in 2005-2006 and 2007-2008, and 73% in 2007-2008.
Homestead Credit -State should fund 100% of these credits.
MFPRSI -State should fund more of their obligated percentage for their share (3.79%)
MFPRSI Employee contribution -change legislation to lift the cap from 9.4% (City
contribution will rise to 30% in 3 years, employees should help with this cost)
Requested Action:
Reinstate full funding for the Homestead Tax Credit.
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 has become a very useful financing and incentive for
private investment.
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Requested Action:
Support efforts to maintain Tax Increment Financing as an economic development
financing tool.
Funding of Major Transportation Projects
The State of Iowa has used a strategy of allocating funds for completing the major
transportation projects in the state as opposed to using a piecemeal approach. This
strategy has been successful, with extensive work being completed on major corridors.
The same strategy should be used for major projects in larger cities that require
significant funding commitments for completing the projects in a reasonable amount of
time. An example is the SW Arterial/Hwy 32.
Requested Action:
Support efforts to continue the strategy for funding major transportation projects
throughout the state, including projects that have federal earmarks.
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.
Governor Culver has signed a Memorandum of Understanding with the Governor of
Illinois to implement passenger rail service between the States of Iowa and Illinois.
Iowa Code Section 327J establishes the Passenger Rail Service Revolving Fund.
Monies deposited into the fund shall be used to pay the costs associated with the
initiation, operation and maintenance of passenger rail service. In FY 2010, $3 million
was appropriated to the fund through I-JOBS legislation.
"Expanding passenger rail service in Iowa is one of my top transportation priorities," said
Governor Culver. "We are already at work to reconnect some of Iowa's largest cities -
such as Dubuque, Iowa City and the Quad Cities - to Chicago. These funds will help in
our work to expand passenger service across Iowa, and contribute to our state's
economic strength."
Requested Action
Support funding and required operating subsidy to return passenger rail from Chicago to
Dubuque.
Border Communities Incentive Program
In the 2006 Iowa legislative session, House File 2731 was approved to create the
Targeted Jobs Withholding Tax Credit Program. The Department of Economic
Development 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 3
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percent of the wages paid by the company on new eligible jobs. The program will only
be available to four cities which have been chosen as pilot project cities.
This program should be expanded to more communities that fit the qualifying
characteristics. This program would help to 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 fit 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.
Economic Development
The role of city government in economic development is crucial. Economic activity
requires roads, streets, airports, water and sanitation. New jobs 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.
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.
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.
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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 at least $100,000 a year in state
aid.
Requested Action:
Support efforts to increase funding for the Enrich Iowa program.
Enterprise Zone Incentives
The Enterprise Zone legislation was written to promote private investment in
economically distressed areas of a city or county. To assist new employees of
companies locating in enterprise zones, the legislation provides for employers to
establish a capital fund for down payments or rental subsidies. The business funds this
program through a credit from state withholding taxes, based on the wages paid to the
participating employees. An amount equal to 1.5 percent of the gross wages paid by the
employer is credited from the payment otherwise withheld and used to capitalize this
fund.
This feature of the legislation has not been utilized to date. One reason is that the credit
produces so little capital for the housing assistance program. For an employee earning
$10 per hour, the credit equals approximately $300. Typically, down payment
assistance programs offer $5,000 to $6,000; rental subsidy programs average $2,500 to
$3,000 annually. In order to make this program effective, the credit for withholding
should be increased.
Another option is to allow the credit to be "pooled," to be made available to all eligible
employees. As the legislation currently is written, the 1.5 percent credit is made
available on the basis of withholding from individual employees -for the benefit of only
that employee. If the credit could be aggregated, a larger capital fund could be
established, from which all employees purchasing or renting housing in the enterprise
zone could access funds for their housing needs.
Another reason for lack of employer participation in this program is that the legislation
requires the employer to choose between use of the tax credit for job training or for
providing a housing assistance program. Employers to date have chosen to use the
credit to pay for training new employees.
Requested Action:
The legislation should be amended to provide the credit for both job training and
employee housing assistance and to "pool" the funds. This will increase the tax credit
and increase interest in the program by employers.
Hotel and Food Establishment License Fees
In the 2006 legislative session, House Study Bill (HSB) 648 was introduced. This bill
proposed increasing the hotel and food establishment license fees, bringing them in line
with costs of running the program. The bill passed in 2007 increased the various food
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license fees by a range of 20 - 30%. This increase will still not pay for the cost of doing
risk-based inspections, as required by Iowa Code.
Requested Action:
Support legislation that will fully fund State mandated health inspections for Hotel and
Food Establishments through increased license fees.
School Food Program Inspections
An amendment to Section 9(h) of the Richard B. Russell National School Lunch Act (42
U.S.C. 1758(f)(5)) went into effect July 2005. This amendment imposes an unfunded
mandate requiring at least two school food program inspections per year instead of one.
Now, the City of Dubuque Health Services Department will have to inspect school food
lunch programs (which actually cook food on-site vs. just serving food prepared at
another site) two times per year, but will not receive any license or inspection fees for
the service. The City does not believe it is necessary to inspect the school food lunch
programs more than once per year based on past inspections. This unfunded mandate
will add twelve inspections for a total of 50 annual uncompensated inspections for school
lunch programs.
Requested Action:
Oppose legislation for a second School Food Program inspection, and/or create a
funding mechanism to cover the costs of school lunch program inspections.
In addition, both the Health Services Department and the Housing and Community
Development Department would like Iowa Code Section 364.12 (h) changed. Currently,
a notice of 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 mail
of each notice.
411 Contributions
The City of Dubuque's contribution to the retirement system for police officers and
firefighters went from 17% of wages in fiscal year 2003 to 25.48% of wages in fiscal year
2008. The City's contribution is 18.75% of wages in fiscal year 2009. The contribution
rate for police officers and firefighters has remained unchanged since Fiscal Year 1997.
Their contribution is 9.35% of wages. The City of Dubuque's contribution to the
retirement system for police officers and firefighters will go from 17% of wages in fiscal
year 2010 to 19.9% of wages in fiscal year 2011. The contribution rate for police
officers and firefighters is 9.4% of wages.
Requested Action:
Any future increases in funding to support the retirement system for police officers and
firefighters should be borne by the employees and not the cities. In the event there is a
reduction in the funding needed to support the retirement system for police officers and
firefighters, cities contribution to the system should be reduced. Any future increases in
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funding to support the retirement system for police officers and firefighters should be
borne by the employees and not the cities. In the event there is a reduction in funding
needed to support the retirement system for police officers and firefighters, cities
contribution to the system should be reduced.
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. 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 Parly 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. Amend Chapter 411 to allow cities
to seek reimbursement from third parties for costs incurred for Police and Fire injury and
illness claims.
Seasonal Employees
Currently, temporary seasonal 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 3 or 4 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 seasonal when hired. This puts a costly burden on the employer. 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 3 to 4 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 seasonal employees are not allowed to collect
unemployment.
Amend the unemployment law so that temporary employees are not allowed to collect
unemployment.
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
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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.
Expand Definition of Good Moral Character
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.
Requested Action:
Review the definition 123.3(26)(d) "Person of Good Moral Character" by consideration to
expand felony convictions to include appropriate indictable misdemeanors (i.e.
convictions of O.W.I. (321J.2), Bootlegging (123.59) and other such liquor violations)
Civil Rights Enforcement
Civil rights agencies are the law enforcement tools for civil rights laws. The Iowa Civil
Rights Commission works in partnership with the Dubuque Human Rights Commission
and other local commissions to successfully leverage resources to enforce civil rights
laws across Iowa. Apart of that partnership includes a contract arrangement I which local
commissions are reimbursed for processing cases that the State Commission would
have to process in the absence of a local commission. In addition, the Iowa Commission
also is responsible for enforcement of civil rights in Dubuque County. The state and
local agencies are leaders in efforts to educate business and industry on civil rights laws,
on diversity, and on preventing discrimination. Increasing caseloads and outreach
obligations with minimal staff are impeding Commissions' abilities to protect the public
and sending the wrong message regarding the value we place on diversity and
inclusivity, at a time when we are struggling as a state to attract economic development
and build our workforce. Civil rights protection provides the mechanism to address and
prevent problems in the workplace that could hamper new Iowans from locating and
remaining in our state.
Requested Action:
Support budget increases for the Iowa Civil Rights Commission to enable the
Commission to sufficiently reimburse local commissions for case processing and
reduction in case backlogs and delays and to fully support statewide education and
outreach efforts.
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Airaort Issues:
State Aviation Fund
Beginning in FY 2008, revenues from aviation fuel taxes and aircraft registration fees will
be deposited into the State Aviation Fund. Revenues from use taxes collected from
aircraft sales must also be deposited into the State Aviation Fund to be reinvested into
Iowa's air transportation system. Recommend that the State Aviation Fund be
restructured to serve as a Trust Fund in a similar fashion to the Federal Airport and
Airway Trust Fund.
Vertical Infrastructure Funding
At a minimum, increase funding for the highly successful Commercial Service Vertical
Infrastructure program to at least $1.75M (current appropriation of $1.5M) and increase
General Aviation Vertical Infrastructure program funding to at least $1.0 M (current
appropriation of $750,000) for facility improvement projects at public-owned, public-use
airports in Iowa.
Increase funding for the highly successful Commercial Service Vertical Infrastructure
program to at least $2M (current appropriation of $1.5M) and increase General Aviation
Vertical Infrastructure program funding to at least $1.5M (current appropriation of
$750,000) for facility improvement projects at public-owned, public-use airports in Iowa.
Air Service Development and Retention
Iowa's economy depends on regular, dependable and affordable commercial air service.
Maintaining air service is essential to the economic recovery of all corners of the state.
We support the establishment of an Air Service Retention Task Force made up of
representatives from: the Department of Transportation's Office of Aviation, Department
of Economic Development, as representative from each of the state's commercial
service airports, two representatives from commercial airlines serving the state and a
member of the majority and minority parties in the House and Senate. The Task Force
shall develop a plan for the retention of current passenger airline services.
Iowa is underserved by commercial air carriers. Recommend establishing a grant
program using revenues from aviation fuel taxes already collected to assist smaller
commercial service airport in developing and implementing air service programs.
Taxation Aviation Tax Policy
Iowa airports and aviation industry have prudently requested sales and use tax policy
changes to remain competitive with our neighboring states. The repeal or capping of
any aviation sales and use exemption would severely cripple the state's airports and
aviation industry.
Airport Property Public property is exempt from property taxes. Publicly-owned, public
use airports are public facilities. Airports need legislative clarification that airport
property used for agriculture and other (non-aviation uses) is not subject to property
taxation. The main purpose of such property is to maintain runway protection zones and
compatible land uses for the safety of aviation activities.
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Technical correction of Use Tax Increase for Aircraft Sales
We request a technical correction to Code section 423.5 that would tax aircraft sales at 5
percent. The 2008 session of the Iowa Legislature included SILO legislation passed in
House File 2663 that was signed into law by the Governor. In the legislation, the use tax
rate on the purchase of automobiles subject to registration remained at 5 percent,
however, use tax on the purchase price of aircraft increased from 5 to 6 percent. This
increase is a hindrance to the aircraft sales industry in Iowa and an unfair burden not
imposed on other transport vehicles.
It appears it may have been an unintended consequence of the changing legislation.
The amendment to Code section 423.5, unnumbered paragraph 1, that makes this
chance was included in Section 11 of House File 2663:
http://coolice.leais. state. ia. us/Cool-
ICE/default asp?category=billinfo&service=billbook&aa=82&hbill=HF2663
Airport Animal Depredation
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 increasing 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.
Rebuild Iowa
Provide for continuation of Rebuild Iowa Infrastructure Fund appropriations for vertical
infrastructure projects at both commercial and general aviation airports.
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.
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.
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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 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.
Ambient Air Quality Rules
In July 2004 the Environmental Protection Commission set H2S limits at 30 parts per
billion (ppb) with a 60 minute average. Due to the fact that this is an air quality rule, it
has to affect everyone, farmers, industries and municipalities alike. This rule could have
disastrous effects on wastewater plants causing cities to provide for major H2S,
ammonia and other mercapton control system that are very expensive and costly to
operate.
Requested Action:
Enact legislation that exempts local government from the 30 ppb rule.
Increase REAP Funding in the Environment First Fund
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.
The following four state agencies administer REAP programs:
1. Department of Natural Resources
2. Department of Agriculture and Land Stewardship, Division of Soil Conservation
3. Department of Cultural Affairs, State Historical Society
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4. Department of Transportation
REAP funds go into eight different programs based on percentages that are specified in
state law. REAP Fund Allocation: First $350,000 each year goes to Conservation
Education and 1% of balance goes for DNR Administration. The remaining balance is
then divided as follows:
1. DNR Open Space 28%
2. City Parks and Open Space 15%
3. Soil and Water Enhancement 20%
4. County Conservation 20%
5. DNR Land Management 9%
6. Historical Resources 5%
7. Roadside Vegetation 3%
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, and in the recent past that level has been $10 million from
the general fund. Interest from the REAP account and receipts from the sale of natural
resource license plates add about $1.0 million to this appropriation for a total of $11
million a year.
In the last 2 years, REAP has been appropriated $18 million, compared to the 20-year
average of $11 million.
Requested Action:
Request that the Iowa Legislature work to increase REAP to full funding of $20 million,
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 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
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local Board of Review. Ask the Iowa Legislature to review appeal dates and Board of
Review sessions to allow sufficient time for appellants to present all their information.
• CAP Act of 2009 (H.R. 3745). The CAP (Community Access
Preservation) Act of 2009 introduced by Wisconsin Rep Tammy Baldwin
recognizes the important role that Public, Educational, and Governmental
(PEG) access channels play in local communities and addresses some of
the concerns facing these channels.
• Legislation that establishes national standards for interoperable public
safety standards for first responders.
• Legislation that preserves and extends municipal government authority to
provide communications services to their constituents.
• Legislation that overturns the FCC cable franchise order and returns to the
local franchising scheme set out in the 1984 Cable Act.
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