State of Iowa Legislative Priorities 2011 SessionMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: City of Dubuque State Legislative Issues for the 2011 Session
DATE: November 30, 2010
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 December 7, at 5:30 p.m. at the Grand River Center.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Attorney
Memel C. Van Milligen
Dubuque
All- ancricaCity
2007
City Of Dubuque
State Legislative Issues
For The 2011 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 has 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
Roshek Building 1,300
Total 1,865 new permanent jobs
These projects have added well over 1865 permanent jobs to our economy, not including the
construction jobs to complete the large projects. These 1865 people would equate to a $79.4
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. Work to ensure that the administrative rules support
private sector development and best practices.
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Workforce
Households
(Dubuque)
Dubuque
Gross
Annual
Income
Gross
Monthly
Affordable
Net Affordable
Net Affordable
Rent
Mortgage Pmt.
(wlo utilities)
(w /o utilities,
tax &
insurance)
Housing
Cost
80 %AMI
$35,250
$881
$661
$581
120% AMI
$52,836
$1,321
$991
$872
Smart Growth Workforce Housing
Creation of the Smart Growth Workforce Housing grant program under the discretionary
policy of the Iowa Finance Authority provides greater opportunity for the City of Dubuque and
its partners to stabilize the community and will prioritize environmentally - sustainable
development and will promote economic development. This grant program was established in
the 2010 legislative session. The program needs funding appropriations to become available
effective FY2012.
Definition
Smart Growth practices are settlement patterns that avert urban sprawl by encouraging more
compact development, greater transit use, and enhanced environmental protection. Workforce
housing is normally defined as housing affordable to households earning between 80 percent
and 120 percent area median income (AMI). Affordable, in the housing industry, means a
household pays no more than 30 percent of its annual income on housing. Smart Growth
Workforce Housing is the combination of these concepts — the development of sustainable,
transit - oriented housing that is affordable for our workforce.
What can our workforce households afford to pay for housing? "The National Housing Act of
1937 created the public housing program... [wherein] a tenant's income could not exceed five to
six times the rent; and by 1940 income limits gave way to the maximum rent standard in which
rent could not exceed 20 percent of income — in practice, the same as the predecessor income
limit standard. Over the decades, that percentage has risen, so that by 1981 the threshold was
set at 30 percent of income. Households that spend over 30 percent of income on housing are
considered cost burdened. Why the increase? Was it truly deemed a more appropriate
benchmark? Or was it simply in response to an increase in housing costs and the
government's inability to subsidize housing for an ever - growing number of struggling
households?
Using the current industry standard of spending up to 30 percent of gross income for gross
housing costs (including tax, insurance, & utilities), workforce households could be expected to
spend the maximum amounts indicated in the table below. Housing markets differ greatly, but
we know that rents run much higher than these net rent levels in many areas; and conversely,
these rents are simply unattainable in other areas like Dubuque due to lower local prevailing
wages. The mortgage levels listed below would service a 30 -year mortgage valued between
$83,000 and $125,000, whereas the current median sale price for homes in Dubuque is
$121,800 — barely within reach for the upper end of our workforce.
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Over the past decade, rising housing costs have outpaced the average salary across the United
States — in some areas by two- to five -fold. Many workers in urban areas have dealt with this
discrepancy by living far from their downtown jobs or by living in housing they can't afford.
Unfortunately, the former solution is offset by an increase in transportation costs. And what is
the price we pay for the latter solution? "Families who pay more than 30 percent of their income
for housing are considered cost burdened and may have difficulty affording necessities such as
food, clothing, transportation and medical care." In fact, a full 37% of homeowners and 50%
of renters today are cost burdened.
Fortunately, housing costs in smaller urban and rural areas are often within closer reach for
workforce households. However, in areas where vacancy rates are low — calling for the
production of new units — development of quality housing is financially impossible, as
operational income on the properties is not enough to cover interest payments on the project
mortgage. Low local rent levels, although beneficial for tenants, preclude developers
from creating new units, despite a community's housing shortage. For this reason, many
developers have turned to the LIHTC program to make their projects financially feasible,
whether or not this fulfills the community's particular housing demand.
Meanwhile, the recent economic downturn and housing market woes have combined to create a
new class of workers, forced into the rental market because they do not qualify for a mortgage.
Displaced workers with homes that won't sell, families who've had their homes foreclosed,
young professionals with student loans, and households that might otherwise be able to afford
mortgage payments if only they could come up with the higher requisite down payment
demanded in a tight lending climate — all of these are moving into the rental market. This
creates a rather sudden increase in the demand for rental residential units for households that
are neither wealthy, nor are they eligible for low- income housing.
The creation of affordable housing options for our workforce allows communities to attract and
retain quality employers. If the only housing that developers can afford to produce is intended
for low- income or wealthy households, we should not be surprised to see such a disparity in our
communities' income levels. To have a healthy mix of incomes, we must have housing options
available for all income levels.
In addition to many communities' needs for affordable workforce housing, their efforts at being
sustainable may inadvertently be counterproductive to their housing goal. A recent study from
the Lincoln Institute of Land Policy shows that "the presence of a state smart growth program
was the strongest predictor of increases in owner cost burden" and that "the housing cost
burden for renters was consistently higher than for owners."
The results of this study "indicate that smart growth programs that lack an affordable housing
element have been associated with increases in housing cost burdens ". "These results, coupled
with differences in program design and implementation among states, suggest that if smart
growth programs are to have a positive impact on housing affordability or avert a negative
impact from constraints on the land market, they must explicitly require the production of
housing for low- and moderate - income households, rather than merely plan for it or ignore it
completely. Simply stated, program design matters."
Recommendation
Fund the newly created IFA Smart Growth Workforce Housing grant program.
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Iowa Highway 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 one - 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.
As a 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.
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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
Local Funding
Amount
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 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.
* After Obligation Limitation Reduction:
Total Federal Funding:
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.
5
$ 27,000,000
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
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.
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 two -lane highway between Hwy 20 and Hwy 61/151 highway
and help provide the match to allow the expenditure of federal funds.
6
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.
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, the Metropolitan Coalition and ISAC to approve legislation
to design a tax structure that provides tax equity and policies that are consistent with an overall
direction for state and local government taxation.
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
7
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.
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 Proqram
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.
8
The Targeted Jobs Withholding Tax Credit Program is a program for cities located adjacent to
neighboring states to remain competitive in attracting new jobs. Receiving project city status for
this program will make incentives available in the amount of up to three percent of the wages
paid by the company on new eligible jobs. 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.
9
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.
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.
10
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 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 2010 to 19.9% of wages in Fiscal Year 2011.
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, the cities' contributions to the system should be reduced.
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411 Subrogation
Currently in Chapter 411, cities are not allowed to seek reimbursement from Third Parties for
costs incurred for Police and Fire injury and illness claims. As such, a Police or Fire employee
may collect against the City for an injury or illness claim and collect a second time for the same
incident against a Third Party. If the employee is successful in getting payment from the Third
Party, the City is currently not able to obtain reimbursement (subrogate) from the Third Party
payment.
Requested Action:
Amend Chapter 411 to allow cities to seek reimbursement from third parties for costs incurred
for Police and Fire injury and illness claims.
Seasonal Employees
Currently, temporary employees that accept a job that starts on a specific date and ends on a
specific date are eligible to collect unemployment. For example, temporary employees hired for
three or four months to mow lawns during the summer are allowed at the end of the summer to
collect unemployment even though they know the job is temporary when hired. This puts a
costly burden on the employer.
Requested Action:
Amend the unemployment law so that temporary employees are not allowed to collect
unemployment.
Underage and Binge Drinking
Current legislation provides for a penalty to be placed upon the establishment that serves
minors. However, only a simple misdemeanor penalty is placed upon the underage person
attempting to purchase alcoholic beverages. This does not discourage this problem, which is
particularly prevalent in college -age students. In an effort to combat underage consumption and
"Binge Drinking" by our college age population, we would ask legislative consideration to
increase the simple misdemeanor penalty found in Iowa Code Chapter 321.216 and 123.50 to a
higher penalty.
Requested Action:
Pass legislation to increase the simple misdemeanor penalty found in Iowa Code Chapter
321.216 and 123.50 to a higher penalty.
Eliminate "Good Moral Character" language from Iowa Code
One of the criteria for the issuance of a State of Iowa liquor license is determined by "Person of
Good Moral Character" as defined in State of Iowa Code 123.3 (26)(d). The State takes into
consideration the local municipality's interpretation of "Person of Good Moral Character" prior to
issuing a liquor license.
Requested Action:
Urge legislators to eliminate "good moral character" language and replace it with objective
standards.
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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 in 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.
Airport 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, A.A. 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
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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.
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 five percent, however, use tax on
the purchase price of aircraft increased from five to six 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 change was
included in Section 11 of House File 2663:
http: / /coolice.legis.state. ia. us /Cool-
ICE /default. asp ?category= billinfo& service = billbook &qa= 82 &hbi11= 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
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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. 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.
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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:
Department of Natural Resources
Department of Agriculture and Land Stewardship, Division of Soil Conservation
Department of Cultural Affairs, State Historical Society
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 two 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
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provide it very late in the Board of Review session so the Board is unable to reach a well
founded conclusion.
Requested Action:
Request the Iowa Legislature to limit appeals to District Court and the Property Assessment
Appeal Board to matters and information that were presented before the local Board of Review.
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.
Property Taxes on Local Governments
Iowa Code section 427.1(2) is the controlling determination of eligibility for a property tax
exemption for property owned by a city that is being leased to federal and county entities.
A Supreme Court case involving the City of Oskaloosa filed October 21, 1992 addressed the
issue of city owned property being leased by the United States Postal Service. The court's
decision was that property leased to another governmental entity is not exempt from property
taxes because the use must before a use that comes within the duty of the governmental unit
that owns the property. Cities and Counties have different duties and responsibilities.
In my cases, joint use of buildings or property by governmental agencies provides a benefit to
local tax payers. However, this Supreme Court decision actually penalizes local governments
that share building space. A prime example of this is the lease of extra space in the Historic
Federal Building (owned by the City of Dubuque) to Dubuque County for Juvenile Services, and
the Drug Task Force. Some space is also leased to the U.S. Post Office. Based on the
Supreme Court decision, these governmental units are required to pay property taxes on space
leased from the City.
Requested Action:
Amend Iowa Code section 427.1 to exempt property from property taxes if it is owned by one
governmental unit and is leased to another governmental unit.
Arts and Culture
Background
Arts and culture is a strong component of tourism, economic development and quality of life for
all Iowans. Great livable communities in Iowa must support culture, arts, history, and focused
community development. Investment in cultural programs improves the quality of life in Iowa
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and helps to attract and retain a vibrant workforce which assists in developing and promoting
Iowa's economic vitality.
Iowa ranks 42 of all states in per capita spending of $0.34 for arts and culture. The national
average is $.90. States with similar populations out rank Iowa. Utah spends $1.01 (14
Arkansas spends $.74 (25 and Mississippi spends $.65 (27
In 2004, the Dubuque City Council approved an Arts and Cultural Affairs Advisory Committee,
$35,000 in annual project grants and established a Downtown Cultural Corridor. A $200,000
annual operating and special project support funding was established in 2005 and $300,000 in
capital funds was allocated for the Art on the River public art program for ten years. Dubuque
created a part time staff position of Arts and Cultural Affairs Coordinator in FY2009 with partial
funding from Iowa Community Cultural Grants in 2009 and 2010. The coordinator works closely
with the Commission to promote and increase awareness and market the arts and activities and
allocate budgeted funding for the arts and cultural activities. The position has enabled the
Commission to develop goals and priorities, to enhance the public art program by creating
standards of excellence using regional, state and national models and refining the grant process
to ensure the taxpayer's money is used in the best possible manner. Although much has been
accomplished, many opportunities remain to strengthen and expand Dubuque's cultural vitality.
The recent designation of the Historic Millwork District plan brings integrated strategies that
include design guidelines, historic preservation, community gardens, central gathering spaces,
arts venues and artistic streetscapes. The City markets itself as a major tourist destination
featuring world class museums, cultural opportunities, and historic architecture. Over $1.7
million visitors come to Dubuque each year, many of them Iowans who are vacationing closer to
home. The Dubuque Chamber of Commerce estimates that at least two thirds of the 98,000
people in Dubuque County visit the Port of Dubuque, where the City's temporary art exhibit is
held, one or more times in the course of a year.
The City of Dubuque has provided more than $1.5 million dollars in funding for the arts since the
establishment of the City's Arts and Cultural Affairs Advisory Commission in 2004. The
Commission has managed the City's investment, allocated among three programs: $1.2 million
has been awarded through the Operating Support Grant Program; $240,000 has been awarded
through the Special Projects Grant Program that has leveraged a total of $550,000 in arts
projects in our community, and; $120,000 has funded the Art on the River annual temporary
public art exhibit at the Port of Dubuque.
Not only is the City of Dubuque reliant upon Department of Cultural Affairs funding for the arts,
most of the art and cultural organizations and schools in Dubuque regularly receive funding from
the various grant programs offered through the Department of Cultural Affairs,
The latest information from 2006 shows an economic impact of arts and cultural organizations in
Dubuque of $22 million. A new economic impact study from Americans for the Arts will be
conducted in 2011.
Requested Action:
Support programs in the Department of Cultural Affairs (Iowa Arts Council, State Historical
Society of Iowa) to continue to recognize and promote Iowa's cultural heritage as key in
recovery and strengthening of all Iowa communities. State funding of these programs leverages
local support for arts and cultural organizations, historical organizations, educational programs,
rehabilitation of historic buildings, and projects involving a variety of historic resources. These
cultural activities also employ accountants, designers, contractors, union workers, etc. Specific
programs to support include:
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• Provide specific funding for the Cultural Leadership Partners program at $250,000 and for the
"Major and Mini Grants" program at $500,000 to ensure continuation of these programs without
dependence on budget appropriations for the Iowa Arts Council.
• Support funding for Iowa Community Cultural Grants at $300,000.
• Match the federal funding of $40,000 for Big Yellow School Bus Grants with $80,000 by the
state to double the required state level funding and expand program language to include all
historical and cultural destinations.
• Maintain funding for the Historic Site Preservation Grants in the Department of Cultural Affairs
at $1 million.
• Provide appropriate staff support within the Department of Cultural Affairs to provide previous
levels of services to communities and citizens of Iowa through all programs and departments.
Energy Efficiency & Alternative Energy:
Recently, the American Council for an Energy- Efficient Economy ranked Iowa 12 in the nation
for its efforts to promote energy efficiency. Iowa scored highly in the category of building energy
codes as one of only 17 states with a statewide code that meets or exceeds the latest
International Energy Conservation Code standards for both residential and commercial
buildings. Businesses, residents and local governments have taken advantage of existing
incentive programs, but still have much work to do in order to make their new and existing
buildings more energy efficient. As energy efficiency is achieved, private and public
organizations as well as individuals have begun to explore a variety of alternative energy
options to increase their energy independence, reduce dependence on coal and oil, reduce
greenhouse gas emissions, and improve public health.
The City of Dubuque and local non - profits and businesses have established a strong working
relationship with the Office of Energy Independence and have relied on their staff and programs
for both technical support and grant funding to achieve the sustainability goals of our
community.
Requested Action:
Continue to support the Office of Energy Independence and its programs. Continue successful
energy efficiency incentive programs and explore opportunities to remain competitive with other
states offering incentives for the installation and utilization of alternative energy.
Food Residual Composting
Iowa Administrative Code 567 — Chapter 105 regulates the composting of various materials,
including yard waste, agricultural byproducts, garbage, dead animals, and food residuals. At
the present time, the noted regulations require costly infrastructure improvements before a
permit is granted by the Iowa Department of Natural Resources to allow the composting of food
residuals from homes, grocery stores, restaurants, and cafeterias. As a result, all but three (3)
of Iowa's forty -five (45) landfills continue to bury their service area's food residuals instead of
composting them.
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Requested Action:
Amend Iowa Administrative Code 567 — Chapter 105 to encourage Iowa's other forty -two (42)
landfills to compost, rather than landfill, food scrap residuals.
Healthy Local Foods
During the 2010 Legislative Session, the Legislature charged the Leopold Center for
Sustainable Agriculture with preparing a local food and farm plan containing policy and funding
recommendations for supporting and expanding local food systems and for assessing and
overcoming obstacles necessary to increase locally grown food production. The Healthy Local
Foods principle of Dubuque's Sustainability Model aims to provide benefits of wholesome food
from local producers, distributors, farms, gardens and hunters to all. The City and its partners
engaged in the Healthy Local Foods initiative have participated in the forming of the Local Food
& Farm Plan.
Requested Action:
Provide policy direction, funding and other resources to implement the recommendations of the
Local Food & Farm Plan to be delivered to the Legislature in January 2011.
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