Legislative Correspondence_Governor Brandstad BudgetVIA E -mail &
1s Class Mail
«Email»
«CompleteOFFICIALName_Address»
Dear «Title» «Last»,
February 1, 2011
I am writing to express the opposition of the City of Dubuque to several aspects of Governor
Branstad's budget. Specifically, we believe the commercial property tax changes, not fully
funding the Homestead property tax credit, and the increase in gaming tax will be very
detrimental to our community and state. We fully support the Governor's goal to create 200,000
new jobs for Iowans but we feel these measures are the wrong approach.
In Dubuque, two of the biggest beneficiaries of a 40 percent commercial property tax break
would be two corporations, one from Illinois and one from Ohio, that own Asbury Plaza and
Kennedy Mall, which represent nearly $50 million in Dubuque's valuations. The other group that
would benefit the most from such a measure is landlords, whose properties comprise 14 percent
(nearly $148 million) of Dubuque's commercial valuations. Tax breaks for these entities will not
create new jobs but will instead create a loss of taxable value for our community and shift costs
to residential property owners and cause a drastic reduction in city services.
Additionally, we believe Governor Branstad's plan to increase the casino tax to 36 percent
threatens the survival of Dubuque's Mystique Casino and its non - profit operator, the Dubuque
Racing Association.
The commercial property tax reductions and loss of Mystique Casino revenue, combined with
failure to fully fund the Homestead property tax credit, will result in a projected 90 percent
increase in the city portion of Dubuque's residential property tax rate over the next five years.
To mitigate these property tax increases, drastic cuts will need to be made to city services.
MCVM:jh
Sincerely,
Michael C. Van Milligen
City Manager
The Honorable Pat Murphy
Iowa State Representative
155 N. Grandview Avenue
Dubuque, IA 52001
The Honorable Tom Hancock
Iowa State Senator
310 E. Main Street
Epworth, IA, 52045
The Honorable Chuck Isenhart
Iowa State Representative
P.O. Box 3353
Dubuque, IA 52004 -3353
The Honorable Steven Lukan
Iowa State Representative
7365 Columbus Street
New Vienna IA 52065
The Honorable Tom Harkin
350 W. 6th Street, Room 315
Dubuque, IA 52001
The Honorable Pam Jochum
Iowa State Senator
2368 Jackson
Dubuque, IA 52001
The Honorable Tod Bowman
Iowa State Senator
812 Grant St.
Maquoketa, IA 52060
The Honorable Brian Moore
Iowa State Representative
18314 267th St.
Zwingle, IA 52079
The Honorable Lee Hein
Iowa State Representative
11989 Richland Rd.
Monticello, IA 52310
The Honorable Charles Grassley
206 Federal Building
101 1st Street S.E.
Cedar Rapids, IA 52401