Letter to State Legislators - 2019 Legislative Priorities Copyrighted
January 7, 2019
City of Dubuque Consent Items # 11.
ITEM TITLE: Letterto State Legislators - 2019 Legislative Priorities
SUMMARY: City Manager submitting letter to State Legislators requesting
support in creating strategic initiatives around mental health,
childcare, quality affordable housing, job training, workforce
development, job creation and do all this looking through an equity
lens.
SUGGESTED DISPOSITION: Suggested Disposition: Receiveand File;Approve
ATTACHMENTS:
Description Type
Letter to State Legislators re 2019 Legislative Priorities Supporting Documentation
�''"' �}t,#k1tlt�llG City Manager's Office
THE CI`TY i�F �. '"" ��� City Hall
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� Fax(563)589-4149
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���ZS�E,'?�Z�C�.' 012 ��ZL' .��Z��Z��u2��?Z 20�3-2017 ctymgr@cityofdubuque.org
www.cityofdubuque.org
November 28, 2018
«CompleteOFFICIALName Address»
Dear «Title» «Last»,
The State of lowa is an agricultural state and Dubuque supports ways that are devised to
support agriculture and rural communities. The things that I advocate for like education,
property tax backfill payments, Historic Tax Credits and Tax Increment Financing benefit all
cities, counties and school districts, large and small. This does not diminish the fact that the
economic engines in the State of lowa are the population centers where most of the jobs are
created and most of the state tax revenues are generated.
Dubuque has the lowest property tax rate per capita of the 11 largest cities in lowa (those
with a population larger than 50,000). In fact, Dubuque's property tax rate is 45% below the
average of the 10 other cities. By the end of the current 5-year capital improvement program,
the City will be utilizing only 37% of the statutory debt limit and currently has general fund
reserves of 22%. Over the years, the City of Dubuque has reorganized and implemented
technology improvements and actually has 27 fewer full-time employees than in 1981, even
though the City now offers more services. Dubuque sets a very high standard when it comes
to fiscal responsibility.
When it comes to job creation and economic development, Dubuque is a leader in the
Midwest and in the State of lowa.
"Would the last person to leave Dubuque please turn off the lights?" Residents used this
dark humor to help deal with Dubuque's dire unemployment rate which hit 23% in January
1982. High school and college graduates left for more prosperous cities and states, taking
their talent with them, with Dubuque losing almost 10% of its population in the 1980's.
Enter Tax Increment Financing. In 1985, the lowa State Legislature amended urban renewal
law to allow cities to use Tax Increment Financing (TIF) for economic development purposes.
This tool simply directs the increase in property tax generated from property improvements to
the city, which can use this increment to clean slum and blight and as a financial incentive to
companies that invest and create jobs in the urban renewal area. This is how the City of
Dubuque built 1,468 acres of industrial parks, now home to 55 businesses, including 47 local
businesses that needed a place to expand.
«Title» «First» «Last»
November 28, 2018
Page 2
The City of Dubuque has committed $86 million in Tax Increment Financing incentives for
businesses since 1990 in the industrial parks and in downtown Dubuque. This has leveraged
$490 million in private investment by these businesses. With the use of TIF, businesses in
Dubuque have retained 3,988 existing jobs and created 6,428 new jobs. To date, 78 projects
have benefitted from the use of Tax Increment Financing.
Dubuque's responsible use of this only meaningful local economic incentive has created a
nationally-recognized transformation. The Dubuque metropolitan statistical area (MSA) total
employment for June 2018 was 60,500, a 61% increase since 1983 when total employment
was 37,600. In October 2018, the Dubuque MSA's unemployment rate was 1.7%. Dubuque
County's Median Household Income (MHI) rose from $48,012 in 2009 to $56,154 in 2016, a
14% increase. In this same period, the national MHI increased by only 2.5%. Dubuque has
been ranked by Forbes, Kiplinger, the U.S. Conference of Mayors, the National Civic League,
and the Milken Institute as one of the best cities in the United States to live and work.
This has all been achieved through Planning, Partnerships and People, leading to
measurable outcomes. Dubuque believes in showing people we care, by our actions, so that
they can have hope to achieve their personal goals, whatever they might be.
Here in Dubuque we are worried about one of our key partners, the State of lowa.
The State of lowa is underperforming in critical areas. It is ironic and troubling that we
continue to hear about state legislation and rules that cut revenues available to local
governments. Recently state legislation was proposed that would eliminate the promise to
backfill past property tax reductions with state revenues, severely restrict the use of Tax
Increment Financing (the only viable economic tool used by local governments to support
growth in business investment and jobs) and eliminate or reduce Historic Tax Credits for
building rehabilitation. These all threaten the ability of local governments to respond to local
issues.
Information recently released by the State of lowa Legislative Services Agency shows the
change in population in counties across lowa (Attachment I). It is a frightening trend that
must serve as a wake-up call for all lowans. If we want our children and grandchildren to be
able to stay in lowa and be successful, we must all work to make lowa a place of choice, not
only for businesses but also the workforce they will need to thrive. We should not be
considering the elimination of economic development and community rehabilitation tools, but
instead exploring how we can improve those tools to create more growth in jobs and
population and to make the incentives more competitive. We should not be pursuing ways to
starve cities, counties, and school districts of the funds they need. We should instead be
looking to diversify sources of revenues so local governments can invest in the future for the
benefit of the residents they serve, those here today and those we hope to be here in the
future.
lowa Percent Chanqe in Population by County 2010-2017
State of lowa +3.2% (+99,356)
«Title» «First» «Last»
November 28, 2018
Page 3
There are 99 counties in the state of lowa. Only 23 showed any growth at all over a 7-year
period from 2010 to 2017. If you only consider counties that had at least 1% growth and
have a population of 25,000 or more, only 11 of the 99 counties met these criteria and four of
them are in the Des Moines/Ames corridor. In fact, the Des Moines/Ames corridor accounted
for 81,808 (82%) of the 99,356 of the state-wide population growth.
Even some of the counties that include some of lowa's larger cities showed very little growth
or an actual decline.
COUNTY % Population Change: 2010-2017
Woodbury (Sioux City) +0.1%
Muscatine (Muscatine) +0.3%
Pottawattamie (Council Bluffs) +0.0%
Jasper (Newton) +0.4%
Wapello (Ottumwa) -1.7%
Cerro Gordo (Mason City) -2.5%
Webster (Fort Dodge) -3.4%
Clinton (Clinton) -4.2%
Fortunately, Dubuque County showed a growth of 3.3%, achieving a population of
97,041.
The picture is just as discouraging when you look at the Estimated Population Migration from
2010 to 2016 (Attachment II). This measurement represents the number of people who have
moved to these counties vs. the number of people who have left. The State of lowa
experienced a net inflow of only 24,643 people during this 6-year period.
If you only consider counties that had a net positive change of at least 1,000 people, only 9
(9%) of the 99 counties met that criteria, with 4 of those in the Des Moines/Ames Corridor.
Fortunately, Dubuque County is one of those nine with a net migration increase of
1,389.
Last year, legislation was introduced in the lowa Senate to eliminate over 3 years the
promised property tax backfill payments to cities, counties, and school districts. This would
have cost the City of Dubuque $344,233 in revenues in Fiscal Year 2019, $688,465 in Fiscal
2020, and $1,032,698 in Fiscal Year 2021 and each year beyond. This is on top of the loss
Dubuque experiences from the reduction of property taxes from apartment buildings that will
reach over $1.2 million per year by Fiscal Year 2024 and is not being backfilled by the State.
The legislation would have also reduced funding for the State of lowa Historic Tax Credit
Program (HTCP). This is a significant source of financing for private developers across the
state as they renovate old buildings and repurpose them, like the projects in the Historic
Millwork District that are creating commercial and retail space and hundreds of apartments
for workforce housing.
«Title» «First» «Last»
November 28, 2018
Page 4
Downtown historic redevelopment in Dubuque has added well over 2,100 permanent jobs in
buildings that had been underutilized or were deteriorating or vacant for decades. Dubuque
developers have completed 35 projects to date using the lowa Historic Tax Credit Program.
Just over $42.5 million in lowa HTCP funding has leveraged over $143 million in private
investment. Dubuque currently has 19 more projects in the works, with an estimated $18.5
million in lowa HTCP funding, which is expected to leverage approximately $56 million in
private investment.
Dubuque's responsible use of historic tax credits is nationally-recognized as noted in the Fall
2018 Preservation Magazine produced by the National Trust for Historic Preservation, in
Finding Dubuque:An lowa City Rediscovers Its Sense of Place by Lisa Selin Davis:
"Never, in 15 years of writing about historic preservation, had I heard so many people
utter the words "historic tax credits" with such passion and reverence...The tour
helped me understand the unusually deep and detailed public-private partnerships that
are making Dubuque a model of economic development and community revitalization.
As impressive as these buildings are, just as impressive is the preservation fever that
has taken hold of the city. Preservation projects are creating ripple effects—bringing
in new blood, welcoming long-lost Dubuquers home, and encouraging people from all
over the city to participate in the salvation of historic Dubuque.
Anyone can restore a building. But Dubuque residents, together, are restoring a
community."
Information recently released by the State of lowa Legislative Services Agency shows the
performance of Main Street lowa communities from Fiscal Year 1987 — Fiscal Year 2018. Of
the Urban Main Street communities over 50,000 population, Dubuque has leveraged
$716,853,589 in private and public dollars invested in acquisition and rehabilitation. This
amount is the highest amount of any city and represents 37% of the $1,912,278,450 grand
total for the State of lowa.
A 2018 report released by the lowa Business Council, which represents many of the state's
largest employers, should be a great cause of concern for the State of lowa. When
compared with how lowa ranks among all 50 states in key metrics comparing the year 2000
with 2017, it is clear that lowa needs to do more, not less, to support economic development,
job growth, and workforce development:
«Title» «First» «Last»
November 28, 2018
Page 5
2000 Rankin 2017 Rankin
Median Household Income 21 26
Gross State Product 29 30
8tn Grade Reading Proficiency 11 17
8tn Grade Math Proficienc 12 14
Education Attainment High School 9 11
Education Attainment Bachelor Degree 22 34
Gallu -Healthwa s Well-Bein Index 7 19
Two bright spots in the analysis were:
2000 Rankin 2017 Rankin
State Public-Pension Funded Ratio 29 13
State Business Tax Climate 46 40
We need healthy partners and partnerships to succeed. Locally we have that, and in the past
we have had that with the State of lowa. The State has given Dubuque a Vision lowa grant,
that led to over $400 million in investment in the Port of Dubuque. The State has given
Dubuque the Flood Mitigation State Sales Tax increment grant that has supported the $227
million Bee Branch Creek Watershed Flood Mitigation project. The State has allowed cities
and counties to use Tax Increment Financing, which has led to the retention and creation of
thousands of jobs in our industrial parks and the revitalization of downtown, the Port of
Dubuque and the Historic Millwork District. The State is now building the Southwest Arterial
with the support of the City and County of Dubuque.
Please do not listen to those that say the way to prosperity for the State of lowa is to cut
revenues, programs and services, especially as they affect the least of our friends and
neighbors who might have fallen on hard times, or who might be dealing with the issues of
aging or who are disabled. Let's not look to states like Kansas and Oklahoma as models for
our future. Let's look at states like Minnesota, our colder and snowier neighbor to the north,
where agriculture is important as in lowa and who thrives in spite of their weather challenges.
At the state level, please ask your legislative colleagues to stop pursuing billion dollar tax cuts
when the State struggles to pay its bills today. Please ask your colleagues to stop looking at
ways to restrict the use of Tax Increment Financing, one of the few viable economic
development tools local governments have to create jobs and revitalize blighted areas.
Please ask them to stop looking at eliminating the Historic Tax Credit program that creates
incentives for private developers to renovate historic buildings. Please ask them to stop
considering going back on their promise to provide backfill payments from when the State
reduced commercial and industrial property tax revenues to cities, counties and schools.
We need the State of lowa to focus on how we can all work together to grow lowa and to
make our communities a place of choice where our children and grandchildren want to stay
and new people want to come as we deal with the biggest problem identified by business and
industry and that is the availability of a skilled workforce. We need to focus on quality of life
«Title» «First» «Last»
November 28, 2018
Page 6
issues, on job creation, on job training, on our children's education and on the future. To do
that we need tools at the local level and we need healthy, engaged and active partners. Let's
work together creating strategic initiatives around mental health, childcare, quality affordable
housing, job training, workforce development, job creation and do all this looking through an
equity lens. State of lowa, you are our friend and we care about you. We want the State of
lowa and the City of Dubuque to have hope to achieve our goals working together.
Sincerely,
�J�/�'�'1 �W�r
Michael C. Van Milligen
City Manager
MCVM:sv
Attachments
cc: Mayor Buol and City Council Members
Teri Goodmann, Assistant City
Attachment I
Population by County - 2017 Estimate
Total Population 3�145,711
LYON OSCEOLA DICKINSON EMMET KOSSUTH WINNEBAGO WORTH MITCHELL HOWARD WINNESHIEK ALLAMAKEE lowa Population
11,792 6,045 17,199 9,432 10,587 7,469 10,631 9,228
20,201 13,884
SIOUX 0'BRIEN CLAY PALOALTO �4�999 HANCOCK CERROGORDO
FLOYD CHICKASAW Estimated Population
34,860 13,801 16,170 9,092 10,771 43,006 15,744 12,005
FAYETTE CLAYTON 3,686-14,136
PLYMOUTH CHEROKEE BUENAVISTA POCAHONTAS HUMBOLDT WRIGHT FRANKLIN BUTLER BREMER �9�79G 17 637 14,137-26,484
25,220 11,316 20,110 6,846 9,564 12,784 10,164 14,606 24,911 26,485-50,163
� WEBSTER BLACKHAWK ���BUCHANAN DELAWARE DUBUQUE SO,164-224,115
� .WOODBURY IDA SAC CALHOUN HAMILTON HARDIN GRUNDY :WaY2fIOp1',ZO,Z 17,153 97,041�� Dubuque 224,116-481�V30
Sioux" 36,605 132,648 �
Cit 102,429 6,865 9,817 9,746 15,115 17,048 12,333
v � � � O Major Cities
.Tqry7q BENTON LINN JONES JACKSON
MONONA CRAWFORD CARROLL GREENE BOONE STORY MARSHALL � �9e366
17,058 25,642 224,115 20,536
8,740 17,056 20,320 8,981 26,484 :Ames 40,288 +
cedar CLINTON i Top Five Counties:
97�SOZ �RB�JI(�SCEDAR 47,010 ) 1. Polk: 481,830
HARRISON SHELBY AUDUBON GUTHRIE DALLAS POLK JASPER ��POWESHIEK IOWA JOHNSON �$�543 �% 2. Linn: 224,115
:Anken 3. Scott: 172,509
14,136 11,628 5,578 10,670 87,235 y36,966 18,314 16,103 149,210 scoTT ''
aa�,830 ' 172,sos 4. Johnson: 149,210
-' ' West Des Moines : � Des Moines ' lowa City MuscnnNe • Davenport
�POTTAWATTAMIE CASS ADAIR MADISON WARREN MARION � MAHASKA KEOKUK �WASHINGTON 42,$$0 . 5. Black Hawk: 132,648
93,386 13,145 7,054 16,013 ' S0,163 33,105 22,235 10,153 22,281
�o��sA Top Five Cities:
� Council Bluffs 11,�aa 1. Des Moines: 217,521
Y�MILLS �MONTGOMERY ADAMS UNION CLARKE ���LUCAS MONROE WAPELLO JEFFERSON HENRY 2. Cedar Ra ids: 132�ZZH
15,068 10,137 3,686 12,450 9,374 8,534 7,845 35,044 18,422 19,863 DESMOINES p
3s,a�� 3. Davenport: 102,320
FREMONT PAGE TAYLOR RINGGOLD DECATUR WAYNE APPANOOSE DAVIS VANBUREN 4. SIOUX CIt�/. HZ,514
6,948 15,224 6,178 5,034 7,950 6,476 12,352 8,966 7,157 LEE 5. lowa City: 75,798
34,295
�
��
Percent Change in Population - 2010-2017 Statewide:
LYON OSCEOLN �ICKINSON EMMET KOSSUTH �WINNEBNGO WORTH MITCHELL HOWNR� f WINNESHIEK NLLNM4KEE ����0/O
�.si -s.ai 3-2% -8.1% -2.3% -1.6% _1.5% -3.6% PercentChange
-4.1% -3.4%
SIOU% 0'BRIEN CLNY PNLONLTO -3.4� HANCOCK CERROGOR�O ' '� r'
FLOY� CHICKASNW ft g g,3 56
3.3% � -4.2% -2.8% -3.3% -4.7% -2.5% -3.5% -3.2% -- +
�. � � � FNYETTE CLNYTON �
PLYMOUTH CHEROKEE � BUENNVISTN POCNHONTNS HUMBOL�T WRIGHT FRNNKLIN BUTLER BREMER -5.�� _'j.rj� Population Change
1.0% -6.6% -1.1% -6.1% -2.3% _3.0% -5.0% -2.1% 2.5% J
WEBSTER BLNCKHNWK BUCHNNNN �EL4WNRE �UBUQUE Percent Change
�.WOO�BURY I�N SNC CpLHOUN HNMILTON HNR�IN cnuNor ;�te loo _34� :: Dubuque -_g.5°k to-5.0°k
Siouz 0.1% -2.9% -5.2% -4.1% -3.4% -3.3% -2.8% -1.1% 1.1% � 1.1% I 3.3%
c't -4.9°k to-1.0°k
v
Tprytq BENTON LINN JONES JNCKSON -0.9��tO �.0��
. MONONN CRNWFOR� CpRROLL GREENE BOONE STORY M4RSHNLL '2•3�
�-Ames -37% -1.6% 5•9� "�'�� 1.1°k to 5.0°k
� -5.5% -0.6% _2.4% -4.1% 0.8% -1.0% Cedar
�• $�8� 'Rapids CLINTON 5.1°k t0 30.7°k
_, ceoan -4.2%
HNRRISON SHELBY NU�UBON GUTHRIE �NLLNS POLK JpSPER ��POWESHIEK IOWN JOHNSON 0.Z� O Major Cities
,Ankeny 13.6�/
-5.2% -4.5% -8.5% -2.4% 307% 11.5% 0.4% -3.2% -1.4% scorr
�� � 4.4%
West Des Moines ". �• Des Moines lowa City MuscaTiNE �•Da enport
POTTNWNTTNMIE CN55 N�NIR M4�ISON WNRREN M4RION M4HNSKA I KEOKUK WNSHINGTON�� 0.3� Top Five Actual
o.o/ -s.s/ -a.�/ �.a/ a.2/ -o.a/ -o.a/ -3.a/ 2.�/ Chanae bv Countv:
�o��5p 1. Polk: 49,607
� coUn��ieiUrrs _ _ -�•�% 2. Dallas: 20,498
MILLS MONTGOMERY pppMS UNION CLNRKE LUCNS �MONROE WNPELLO JEFFERSON HENRY 3. Johnson: 17,917
-0.1% -5.2% -8.4% -0.5%T0.6% I -4.1% -1.9% -1.7% 9.5% _�2� �ES MOINES
_ _20� 4. Linn: 12,p458
T PNGE TNYLOR RINGGOL� �ECNTUR WpYNE NPPNNOOSE �NVIS VNNBUREN 5. Story: 7�V75
-4.3% _2.2/ -1.6% -5.6% o.s/ -3.s/ 2.2% -s•s% �EE Top FiveActual
, � . -�•3% Chanqe bv Citv: Bottom Five Actual
� ` 1. Ankeny: 16,834 Chanqe bv Countv:
� 2. Des Moines: 14,088 99� Clinton: -2,082
3. West Des Moines: 98� Lee: -1,552
g ggg 97. Webster: -1,278
4. lowa City: 7,936 96. Cerro Gordo: -1,087
5. Ames: 7,533 95. Fayette: -1,062
Sources: U.S. Census Bureau,2017 Population Estimate; LSA calculations
LSA Staff Contact: Michael Guanci(515.729.7755)michael.quanci(c�leqis.iowa.qov LS��
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Attachment II
Es[ima[etl Popula[ion Migra[ion — April 1, 2010 [o July 1, 2016
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The Honorable Pam Jochum The Honorable Carrie Koelker The Honorable Lindsay James
Senate Chamber Senate Chamber House Chamber
lowa Capitol Building lowa Capitol Building lowa Capitol Building
Des Moines, IA 50319 Des Moines, IA 50319 Des Moines, IA 50319
The Honorable Chuck Isenhart The Honorable Andy McKean The Honorable Shannon Lundgren
House Chamber House Chamber House Chamber
lowa Capitol Building lowa Capitol Building lowa Capital Building
Des Moines, IA 50319 Des Moines, IA 50319 Des Moines, IA 50319