Bee Branch Watershed Flood Mitigation Project, Iowa Flood Mitigation Board 4th AmendmentCity of Dubuque
ITEM TITLE:
SUMMARY:
SUGGESTED DISPOSITION:
Copyrighted
June 15, 2020
Consent Items # 14.
Bee Branch Watershed Flood Mitigation Project, Iowa
Flood Mitigation Board, 4th Amendment to Funding
Agreement
City Manager recommending approval of Amendment No.
4 to the Funding Agreement with the Iowa Flood Mitigation
Board in order to utilize state sales tax increment funding
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 Bee Branch
Watershed Flood Mitigation Project
Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description
Bee Branch 4th Amendment to Iowa Flood Mitigation
Board Funding Agreement-MVM Memo
Staff Memo
Exhibit A
Exhibit B
Resolution
Draft Amendment #4 Agreement
Type
City Manager Memo
Staff Memo
Supporting Documentation
Supporting Documentation
Resolutions
Supporting Documentation
Masterpiece on the Mississippi
Dubuque
bitil
All-A.aia City
111111
2007.2012.2013
2017*2019
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Bee Branch Watershed Flood Mitigation Project, Iowa Flood Mitigation
Board, 4th Amendment to Funding Agreement
DATE: June 8, 2020
City Engineer Gus Psihoyos recommends City council approval of Amendment Number
Four to the Funding Agreement with the Iowa Flood Mitigation Board in order to utilize
$98,474,178 in state sales tax increment funding for the Bee Branch Watershed Flood
Mitigation Project.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
/..
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Gus Psihoyos, City Engineer
Wit
Masterpiece on the Mississippi
Dubuque
bend
III -America City
11111 r
2007-2012.2013
2017*2019
TO: Michael C. Van Milligen, City Manager
FROM: Gus Psihoyos, City Engineer
DATE: June 5, 2020
SUBJECT: Bee Branch Watershed Flood Mitigation Project, Iowa Flood Mitigation
Board, 4th Amendment to Funding Agreement
INTRODUCTION
The purpose of this memorandum is to request approval of an amendment to the
funding agreement (Agreement) with the State Flood Mitigation Board (Board) in order
to utilize $98,474,178.00 in State sales tax increment funding for the Bee Branch
Watershed Flood Mitigation Project.
BACKGROUND
The Bee Branch Watershed, which includes the City's most developed areas where
over 50% of city residents either live or work, has experienced repeated flooding
impacting thousands of properties and over seventy businesses. Six Presidential
Disaster Declarations have been issued since 1999 as a result of flood damage to
public and private property.
In 2012 the State of Iowa Flood Mitigation Program (Program) was created. It
established a Sales Tax Increment Fund for 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. To qualify for sales tax increment funding, federal
financial assistance must have been secured for the project. A local match is also
required and the State sales tax increment cannot exceed 50% of the total project cost.
In 2013, the City Council adopted the Drainage Basin Master Plan authored by HDR
Engineering that outlines improvements to mitigate flooding. Collectively, the 12- phase
project is referred to as the Bee Branch Watershed Flood Mitigation Project.
In November of 2013 the City Council adopted Resolution 336- 13 authorizing the City' s
application to the State for the use of up to $98,494,178 in sales tax increment funds for
the Bee Branch Watershed Flood Mitigation Project. The City's application was
approved by the Iowa Flood Mitigation Board on December 4, 2013.
In February of 2014, the City Council adopted Resolution 31-14 authorizing the
execution of the Funding Agreement with the Iowa Flood Mitigation Board. As outlined
in Exhibit of the Funding Agreement, the City will receive a total of $98,494,178.00 in
State sales tax increment funds distributed over the course of 20 years.
DISCUSSION
On January 29, 2020 the Flood Mitigation Board (Board) approved the City of
Burlington's request to adjust their Sales Tax Increment Projections. The adjustment
made sales tax increment funding available in fiscal years 2020 through 2032.
Subsequently, Iowa Homeland Security & Emergency Management (IHSEM) asked
various funding recipients if they would be in a position to utilize the increment. While
the total amount of increment to be received could not be increased, it would be
possible to receive more increment sooner. Several recipients expressed interest.
Working collaboratively with IHSEM and the other recipients, the additional increment
was made available to the City of Dubuque starting in Fiscal Year 2023 for which the
City could seek through Amendment Number Four to the Funding Agreement
(Amendment). Attached Exhibit A shows how the Amendment will allow the City to
utilize sales tax increment sooner than currently authorized. For example, the City is
currently authorized to receive a combined $3,422,548 in fiscal year 2033 and 2034.
Per the Amendment, the City will receive $3,058,940 of that spread out over the
preceding ten years. The proposed Amendment also adjusts the totals in past fiscal
years to reflect increment received. The Amendment will not adjust the total sales tax
increment to be received. That remains fixed at $98,494,178.00.
While the City did issue two sales tax increment bonds which are being retired using the
annual sales tax increment payments from the State, the City is also using sales tax
increment funding to pay for project elements on a "pay-as-you-go" basis. Therefore,
receiving sales tax increment funding sooner will allow the City to move forward with
project elements sooner.
The City sent a letter requesting the modification of the schedule of payments. And with
the help of IHSEM, the Amendment was presented and approved by the Board at their
June 2020 meeting. The Amendment modifies the schedule of remittances that the City
will receive payable over the term of the agreement and pursuant to the schedule as set
out in the attached Exhibit B. All other paragraphs in the Agreement will remain
unchanged.
RECOMMENDATION
I recommend execution of the attached Amendment Number Four to the Funding
Agreement with the Iowa Flood Mitigation Board establishing the annual schedule of
sales tax increment funds the City will receive from the State, totaling $98,494,178.00,
for the Bee Branch Watershed Flood Mitigation Project.
2
REQUESTED ACTION
I respectfully request adoption of the attached resolution approving Amendment
Number Four to the Funding Agreement with the Iowa Flood Mitigation Board
establishing the revised annual schedule of remittances of sales tax increment that the
City will receive, totaling $98,494,178.00, for the Bee Branch Watershed Flood
Mitigation Project.
Attach.
Prepared by Deron Muehring
Cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Deron Muehring, Civil Engineer
Jennifer Larson, Director of Finance and Budget
3
YEAR
DUBUQUE
APPROVED
EXHIBIT A
DUBUQUE
PROPOSED
AMENDMENT #4
DUBUQUE
INCREASE/
(DECREASE)
2014
$ 395,704.00
$ 728,173.00
$ 332,469.00
2015
$ 2,655,058.00
$ 2,322,589.00
$ (332,469.00)
2016
$ 3,476,709.00
$ 3,476,709.00
$ -
2017
$ 3,906,383.00
$ 3,906,383.00
$ -
2018
$ 3,660,485.00
$ 3,666,608.93
$ 6,123.93
2019
$ 4,392,361.00
$ 4,392,361.00
2020
$ 5,175,452.00
$ 5,175,452.00
$ -
2021
$ 5,973,893.00
$ 5,973,893.00
$ -
2022
$ 6,787,982.00
$ 6,787,982.00
$ -
2023
$ 6,944,414.00
$ 7,080,998.50
$ 136,584.50
2024
$ 6,968,288.00
$ 7,115,772.00
$ 147,484.00
2025
$ 6,946,514.00
$ 7,105,141.00
$ 158,627.00
2026
$ 6,957,577.00
$ 7,127,595.50
$ 170,018.50
2027
$ 6,947,487.00
$ 7,203,282.58
$ 255,795.58
2028
$ 6,947,500.00
$ 7,334,631.00
$ 387,131.00
2029
$ 6,500,000.00
$ 6,911,458.00
$ 411,458.00
2030
$ 6,000,000.00
$ 6,436,319.00
$ 436,319.00
2031
$ 2,935,823.00
$ 3,397,545.00
$ 461,722.00
2032
$ 1,500,000.00
$ 1,987,676.00
$ 487,676.00
2033
$ 1,500,000.00
$ 363,608.49
$ (1,136,391.51)
2034
$ 1,922,548.00
$ -
$ (1,922,548.00)
2035
$ -
$ -
$ 98,494,178.00
$ 98,494,178.00
$ 0.00
EXHIBIT B (Amendment #4)
CITY OF DUBUQUE
Flood Mitigation Program
SALES TAX USE PROJECTIONS
YEAR
ORIGINAL REMITTANCE
approved 02/10/14
AMENDMENT #1
REMITTANCE
approved 04/29/15
AMENDMENT #2
REMITTANCE
approved 06/28/17
*reverted back to
Amendment #1 amount
AMENDMENT #3
REMITTANCE
approved 09/16/19
AMENDMENT#4
REMITTANCE Proposed
2014
$ 332,469
$ 395,704
$ 395,704
$ 395,704
$ 728,173.00
2015
$ 1,407,664
$ 2,655,058
$ 2,655,058
$ 2,655,058
$ 2,322,589.00
2016
$ 2,132,255
$ 3,476,709
$ 3,476,709
$ 3,476,709
$ 3,476,709.00
2017
$ 2,871,049
$ 4,316,027
$ 4,316,027
$ 3,906,383
$ 3,906,383.00
2018
$ 3,624,322
$ 5,173,389
$ 5,173,389
$ 3,660,485
$ 3,666,608.93
2019
$ 4,392,361
$ 4,392,361
$ 4,392,361
$ 4,392,361
$ 4,392,361.00
2020
$ 5,175,452
$ 5,175,452
$ 5,175,452
$ 5,175,452
$ 5,175,452.00
2021
$ 5,973,893
$ 5,973,893
$ 5,973,893
$ 5,973,893
$ 5,973,893.00
2022
$ 6,787,982
$ 6,787,982
$ 6,787,982
$ 6,787,982
$ 6,787,982.00
2023
$ 6,944,414
$ 6,944,414
$ 6,944,414
$ 6,944,414
$ 7,080,998.50
2024
$ 6,968,288
$ 6,968,288
$ 6,968,288
$ 6,968,288
$ 7,115,772.00
2025
$ 6,946,514
$ 6,946,514
$ 6,946,514
$ 6,946,514
$ 7,105,141.00
2026
$ 6,957,577
$ 6,957,577
$ 6,957,577
$ 6,957,577
$ 7,127,595.50
2027
$ 6,947,487
$ 6,947,487
$ 6,947,487
$ 6,947,487
$ 7,203,282.58
2028
$ 6,947,500
$ 6,947,500
$ 6,947,500
$ 6,947,500
$ 7,334,631.00
2029
$ 6,500,000
$ 6,500,000
$ 6,500,000
$ 6,500,000
$ 6,911,458.00
2030
$ 6,000,000
$ 6,000,000
$ 6,000,000
$ 6,000,000
$ 6,436,319.00
2031
$ 5,500,000
$ 2,935,823
$ 2,935,823
$ 2,935,823
$ 3,397,545.00
2032
$ 3,260,000
$ 1,500,000
$ 1,500,000
$ 1,500,000
$ 1,987,676.00
2033
$ 2,824,951
$ 1,500,000
$ 1,500,000
$ 1,500,000
$ 363,608.49
2034
$ -
$ -
$ -
$ 1,922,548
$ -
2035
$ -
$ -
$ -
$ -
$ -
TOTAL
$ 98,494,178
$ 98,494,178
$ 98,494,178
$ 98,494,178
$ 98,494,178.00
Prepared by: Deron Muehring, City Hall, 50 W 13th Street, Dubuque IA 52001 563-589-4270
RESOLUTION NO. 182-20
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 Funding Agreement established the sales tax increment that the City
can receive by fiscal year; and
WHEREAS, additional sales tax increment was made available to the City is fiscal
years 2023 through 2032; and
WHEREAS, the City of Dubuque submitted a request to amend the Funding
Agreement to the Board that would modify the schedule of payments such that the City
would receive sales tax increment sooner; and
WHEREAS, the Board, on June 8, 2020, voted to approve Amendment Number Four
(Amendment) modifying the Funding Agreement and the schedule of payments; and
WHEREAS, it is in the best interest of the City to seek the use of the sales tax
increment available in fiscal years 2023 through 2032 through an amendment to the
Funding Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA THAT:
Section 1. The Amendment is approved.
Section 2. The Mayor is hereby authorized to execute and deliver the Amended and
execute such other documents as the Iowa Flood Mitigation Board may reasonably
require that are necessary to bind the City to the terms of the Amended Agreement as
required for the City's receipt of $ 98,494,178 in sales tax increment funds for the Bee
Branch Watershed Flood Mitigation Project through the State Flood Mitigation Program.
Passed, approved and adopted this 15th day of June 2020.
Roy D. Buol, Mayor
Attest:
KevilK S. Firnstahl, City Clerk
Amendment Number Four
AGREEMENT
Between
THE FLOOD MITIGATION BOARD
And
THE CITY OF DUBUQUE, IOWA
AGREEMENT NUMBER: 2013-0
PROJECT TITLE: Bee Branch Watershed Flood Mitigation Project
This is Amendment Number Four to the above -referenced Agreement (AGREEMENT) between the Flood
Mitigation Board and the City of Dubuque. The original AGREEMENT was executed on 2/10/14, Amendment
Number One on 4/29/15, Amendment Number Two on 6/29/17, and Amendment Number Three on 10/21/2019.
The Flood Mitigation Board, on June 8, 2020, voted to approve the Amendment Number Four to the Agreement
between the Flood Mitigation Board and the City of Dubuque, Iowa.
Article 5, APPROVAL OF USE SALES TAX REVENUES, of the said AGREEMENT is amended to read:
The Board hereby approves the use of sales tax increment revenues under Iowa Code chapter 418 to the
maximum amount of $ 98 494 178.00. Payable over the term of this AGREEMENT and pursuant to the
schedule as set out in the attached Exhibit B Amended #4. All in accordance with and subject to the terms and
conditions of this AGREEMENT, Iowa Code chapter 418, and applicable administrative rules.
All other paragraphs in said AGREEMENT remain unchanged.
IN WITNESS WIiEREOF, in consideration of the mutual covenants set forth above and for other good and
valuable consideration, the receipt, adequacy and legal sufficiency of which are hereby acknowledged, the
parties have entered into the above AGREEMENT and have caused their duly authorized representatives to
execute this AGREEMENT.
Date: el4la
Attest:
K: in S. Firnstahl, City Clerk
Date: 47/6419.ale)
FLOOD MITIGATION BOARD
By:
By:
1
Joy + Flinn, Chair
41A416(90
EXHIBIT B (Amendment #4)
CITY OF DUBUQUE
Flood Mitigation Program
SALES TAX USE PROJECTIONS
YEAR
ORIGINAL REMITTANCE
approved 02/10/14
AMEN DMENT #1
REMITTANCE
approved 04/29/15
AMENDMENT#2
REMITTANCE
approved 06/28/17
*reverted back to
Amendment #1 amount
AMENDMENT#3
REMITTANCE
approved 09/16/19
AMENDMENT #4
REMITTANCE
approved 06/08/2020
2014
$ 332,469
$ 395,704
$ 395,704
$ 395,704
$ 728,173.00
2015
$ 1,407,664
$ 2,655,058
$ 2,655,058
$ 2,655,058
$ 2,322,589.00
2016
$ 2,132,255
$ 3,476,709
$ 3,476,709
$ 3,476,709
$ 3,476,709.00
2017
$ 2,871,049
$ 4,316,027
$ 4,316,027
$ 3,906,383
$ 3,906,383.00
2018
$ 3,624,322
$ 5,173,389
$ 5,173,389
$ 3,660,485
$ 3,666,608.93
2019
$ 4,392,361
$ 4,392,361
$ 4,392,361
$ 4,392,361
$ 4,392,361.00
2020
$ 5,175,452
$ 5,175,452
$ 5,175,452
$ 5,175,452
$ 5,175,452.00
2021
$ 5,973,893
$ 5,973,893
$ 5,973,893
$ 5,973,893
$ 5,973,893.00
2022
$ 6,787,982
$ 6,787,982
$ 6,787,982
$ 6,787,982
$ 6,787,982.00
2023
$ 6,944,414
$ 6,944,414
$ 6,944,414
$ 6,944,414
$ 7,080,998.50
2024
$ 6,968,288
$ 6,968,288
$ 6,968,288
$ 6,968,288
$ 7,115,772.00
2025
$ 6,946,514
$ 6,946,514
$ 6,946,514
$ 6,946,514
$ 7,105,141.00
2026
$ 6,957,577
$ 6,957,577
$ 6,957,577
$ 6,957,577
$ 7,127,595.50
2027
$ 6,947,487
$ 6,947,487
$ 6,947,487
$ 6,947,487
$ 7,203,282.58
2028
$ 6,947,500
$ 6,947,500
$ 6,947,500
$ 6,947,500
$ 7,334,631.00
2029
$ 6,500,000
$ 6,500,000
$ 6,500,000
$ 6,500,000
$ 6,911,458.00
2030
$ 6,000,000
$ 6,000,000
$ 6,000,000
$ 6,000,000
$ 6,436,319.00
2031
$ 5,500,000
$ 2,935,823
$ 2,935,823
$ 2,935,823
$ 3,397,545.00
2032
$ 3,260,000
$ 1,500,000
$ 1,500,000
$ 1,500,000
$ 1,987,676.00
2033
$ 2,824,951
$ 1,500,000
$ 1,500,000
$ 1,500,000
$ 363,608.49
2034
$ -
$ -
$ -
$ 1,922,548
$ -
2035
$ -
$ -
$ -
$ -
$ -
TOTAL
$ 98,494,178
$ 98,494,178
$ 98,494,178
$ 98,494,178
$ 98,494,178.00
Kevin Firnstahl
From:Kevin Firnstahl
Sent:Tuesday, June 16, 2020 4:13 PM
To:carol.tomb@iowa.gov
Cc:Deron Muehring; Kerry Bradley; Teri Goodmann; Alexis Steger
Subject:City of Dubuque / Flood Mitigation Board Agreement - Amendment No. 4
Attachments:Flood Mitigation Board Amendment 4 - Dubuque.pdf
Hello Carol,
Attached for your signature is the partially executed Amendment No. 4 to the Agreement between the Flood Mitigation
Board and the City of Dubuque, Iowa
Agreement No. 2013-0 – Bee Branch Watershed Flood Mitigation Project
Please return an executed copy to me for my files.
Please contact me if you have any questions or difficulty with the attachments.
Thank you.
Kevin S. Firnstahl, City Clerk
th
50 W. 13 Street
Dubuque, IA 52001
kfirnsta@cityofdubuque.org
563-589-4100
563-589-4121
Please note: I am currently working between City Hall and home. You may continue to contact me using the above
listed information. My hours of work are Monday – Friday, 8:00 a.m. to 5:00 p.m. CST.
Are you interested in how the City of Dubuque is responding to COVID-19? Please visit
www.cityofdubuque.org/dubuquecovid19response
HERE FOR YOU: The City of Dubuque is committed to and prepared for providing all essential services to our residents
during the Coronavirus (COVID-19) pandemic. Most City of Dubuque offices and facilities are closed to the public
through at least July 6, 2020, but staff are still working. We are continuing to provide services to the public
electronically, by phone, by mail, and when/if necessary, by appointment.
For contact information and service delivery changes for all departments, visit www.cityofdubuque.org.
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For the latest local information on COVID-19, visit www.cityofdubuque.org/covid19 or call 563.556.6200.
1