Senate Impact Survey Ltr LegislCity Manager's Office
Gty Hall
50 West 13th Street
Dubuque, Iowa 52003.-4864
(563) 589-4110 office
(563) 589-4149 fax
ctymgr @cityofdubuque.org
February 10, 2004
VIA Email and
1st Class Mail
mike_gronstal@legis.state.ia.us
The Honorable Mike Gronstal
Iowa State Senator
220 Bennett Avenue
Council Bluffs, IA 51503
Re: Impact Survey for 2004 Cuts in State Aid
Dear Senator Gronstal,
Thank you for taking the time to get input from cities on the impact that the State Cuts
had on our communities. The reduction in funding to local governments was
devastating to the City of Dubuque as it resulted in a reduction of $1,195,425 in revenue
or 3.54 percent of the general fund operating expense. In an effort to address this
shortfall and to address other budget concerns, the City of Dubuque was forced to
consider the elimination of 18 full-time positions. These positions included three fire
equipment operator positions, two police officer positions, one civilian staff support for
the police department, one park ranger, one maintenance worker for the Park
Department, one fiscal coordinator for the Finance Department, one building supervisor
for Five Flags Civic Center, two engineering positions, one maintenance worker for the
Parking D~ision, one graphic artist, one police officer for the Airport and three librarians.
These positions would be additional cuts on top of the 65 positions eliminated by the
city since the 1980's, a reduction of 11 percent in workforce.
Realizing the impact the loss of 18 full-time positions would have on the city, the City
Council worked to reduce expenses and increase fees for services. A listing of these
increases is included for your information and included the adoption of an electdc and
gas utility franchise fee. Despite these increases, the city was forced to cut five full-
time. Should the legislature choose to reduce our state funding in FY '05, the impact
would be devastating. The result would likely mean increased fees for existing services,
reduction of services and expenses through the elimination of staff. It is uncertain at
Service People ]~te~ity Responsibility Irmovadon Teamwork
The Honorable Mike Gronstal
February 10, 2004
Page 2
this time where these staff reductions would take place, however, it is certain to impact
public safety and other critical city functions.
The City of Dubuque has been fiscally responsible over the years. We have avoided a
property tax increase for the average homeowner for the last nine years, with five of
those years seeing a property tax decrease. The average homeowner in Dubuque has
seen a tax decrease of seven percent over the last nine years on the City portion of
their property taxes, excluding the state reduction in the Homestead Tax Credit.
However, additional cuts from the state will reverse our efforts to be fiscally responsible.
I encourage you to consider the effects of last year's cuts on Iowa communities and not
take similar action in this year's state budget.
Sincerely,
Michael C. Van Milligen
City Manager
MCVM:cs
Cc: Mayor Terry Duggan
Dubuque City Council
Susan Judkins, Director of Governmental Affairs, Iowa League of Cities
Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Dawn Lang, Budget Director
RESOLUTION NO. -04
Requesting a Limitation on Reduction in State Aid to Local Governments
Whereas, in 2003 the Iowa General Assembly voted to reduce state aid to
the City of Dubuque in the amount of $1,195,425 in revenue or 3.54 percent of
the City's general fund operating expenses; and
Whereas, such reductions were made after the City of Dubuque had
certified its budget prior to the March 15 budget certification deadline as required
by law; and
Whereas,; this sudden and unanticipated reduction in state aid resulted in
the layoff of city employees and an increase in fees for City services;
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
That the City of Dubuque requests that the Iowa General Assembly refrain
from making additional reductions in state aid to local governments; and
That if any such reductions are necessary, the City of Dubuque requests
that they be made by not lather than February 27, 2004 so that local
governments can responsibly respond to such reductions.
Passed, approved and adopted this 16th day of February 2004.
Terrance M. Duggan, Mayor
Attest:
Jeanne Schneider, City Clerk
Iowa Senate Impact Survey for 2004 Cuts in State Aid
Name: City of Dubuque Budget Cut: $1,195,425
Please answer these questions and mail, fax or email your answers to:
Senate Democratic Leader Mike Gronstal:
FAX: 515-281-6073 michael.gronstal@legis.state.ia.us
What fee increases did you make in 2003 to counter the loss of $994000 in funding? If, as
has been suggested the state makes an additional cut of the same $150 million in state
funding or more next year, what will the City of Dubuque do to make up the difference?
2% Gas Utility Franchise fee
2% Electric Utility Franchise fee
Increase the following: contractor license fees, business license fees, dispatch tape fees, traffic
control permit fee, dumpster fees, sidewalk inspection fees, ice skate rental fees, ticketmaster
surcharge fee, dog/cat license fees, rental housing fees, library meeting room fees, park pavilion
rental fees, camping fees, billboard inspection fees, special exception fees, zoning fees, criminal
background check fees, impounded vehicle fees, recreation fees, parking fines, bus fares, refuse
fees, and appliance pick-up fees.
Do you anticipate increasing property taxes as a result of legislative cuts in the budget? If
yes, how much?
The City of Dubuque has been fiscally responsible'over the years. We have avoided a
property tax increase for the average homeowner for the last nine years, with five of those
years seeing a property tax decrease. The average homeowner in Dubuque has seen a tax
decrease of seven percent over the last nine years on the City portion of their property taxes,
excluding the state reduction in the Homestead Tax Credit. However, additional cuts from
the state will reverse our efforts over the past 10 years to be fiscally responsible.
3. Did you cut economic development funding in 2003? Do you plan on cutting economic
development spending in 2004?
Much of our economic development funding is supported through community development
block grant (CDBG) funding and tax increment financing (TIF) funds. However, reduced
funding from the State will force us to redirect CDBG and TIF dollars to support non-economic
development activities.
4. Did you cut public safety funding in 2003? If so, what is the amount cut from the Police
Department and Fire Department?
Eliminated a portion of police overtime for STOP program, domestic violence program and
accreditation. Reduced conference travel and training for police and fire. Postponed capital
improvements to fire stations.
5. What projects have been delayed or canceled because of lack of funding? What costs have
you incurred due to delaying or canceling any projects?
Delayed capital improvements to Fire Station #2, g4 and #5. Delayed purchased of radios for
fire department. Delayed improvements to softball fields at Veterans Park. Eliminated funding
for Historic District grant program.
Are there any additional comments you would like the Legislature to consider as we make
the budget?
Should the legislature choose to reduce our state funding in FY '05, the impact would be
devastating. The result would likely mean increased fees for services, reduced services and
expenses through the elimination of staff. It is uncertain at this time where these staff
reductions would take place, however, it is certain to impact public safety and other critical
city functions.
MIKE GRONSTAL
STATE SENATOR
Fi~eth District
Pottawattami¢ County
Statehouse: (515) 281-3901
Office: (515) 2gl-4610
HOME ADDRESS
220 Benne~ Avenue
Council Bluffs, Iowa 51503
Home: (712)328-2808
micha¢l.gronstal~legis.state, imus
January 29, 2004
City Clerk Jemme Schneider
City of Dubuque
50 W 13th Street
Dubuque, IA 52001-4864
State of Iowa
Eightieth General Assembly
STATEHOUSE
Des Moines, Iowa 50319
SENATE
MINORITY LEADER
Rules and Administration,
Ranking Member
Dear City Clerk Schneider,
My name is Mike Gronstal and I am the Democratic Leader of the Iowa Senate. Last
year, a majority of the Legislature voted for deep cuts in state aid to local governments. An
even deeper cut has been proposed this year. I opposed last year's cuts and want to make
sure the Legislature understands the hardships our decisions have imposed on Iowa
communities.
Our research indicates that the state of Iowa failed to provide the City of Dubuque
with roughly $994000 last year. This reduced your budget by approximately 8%. Statewide,
cities and counties lost roughly $60 million. This year, Iowa's cities, counties, and schools
could lose $261 million if the Republican Party's proposal on property tax credits is
approved.
Last year, Senator Mike Counolly, your local senator, joined me in voting to make
sure the Legislature kept its promises to local governments. If we had received the support
of just one more senator, we would have carried the day.
I'm asking for you m help in two ways. First, please answer the enclosed questions.
Please fax or email the information back to my office. I believe such information will be
helpful this session in our fight against additional cuts.
Second, I've enclosed a sample resolution opposing further cuts and asking the
Legislature to decide on this issue well before March 15th, the day you must certify your
budgets. If you decide to pass this resolution or one like it, please let me know. It will also
help make our case at the Statehouse.
Thanks for your time. I appreciate your work on behalf of Iowa's communities. I
want the State of Iowa to be your partner rather than an obstacle to your efforts.
Sincerely,
Senate Democratic Leader