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Legislative Issues 2005 Session ," - . D~ ~~~ MEMORANDUM November 1, 2004 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Amended 2005 Legislative Issues Assistant City Manager Cindy Steinhauser has revised the 2005 Legislative Issues creating a new section on "411 Subrogation" and correcting the current item titled "411 Subrogation" to say "411 Contributions." 1'1~~ ~ J MiclÍael C. Van Milligen - MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager - / D~ ~~~ MEMORANDUM November 1, 2004 TO: Michael C. Van Milligen, City Manager FROM: Cindy Steinhauser, Assistant City Manager SUBJECT: Amended 2005 Legislative Issues Introduction The purpose of this memorandum is to provide a correction to the proposed 2005 Legislative Issues. Discussion Attached is a revision to the proposed 2005 Legislative issues. Included in this revision is a correction to the existing legislative issue entitled 411 Subrogation. This should be corrected to read 411 Contributions. Also included is an additional legislative issue entitled 411 Subrogation and described as follows: 411 SubroQation 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. ," ReQuest The requested action is for City Council to adopt the 2005 Legislative Issues with these corrections. Cc: Barry Lindahl, Corporation Counsel . , City Of Dubuque State Legislative Issues For The 2005 Session State BudQet In response to a revenue shortfall during last session the State of Iowa implemented across-the-board cuts in expenses, Some of these cuts reduced revenues to cities, with no relief to cities for state-mandated programs. Concerns remain over the impact of the reduced revenue to cities and that similar action will be taken in the 2005 session. Reduced state revenues negatively impact property taxes. Requested Action: The state should restore revenues to cities that were cut in 2003 and 2004 in an effort to make cities whole, Fundinq 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, which require significant funding commitments for completing the projects in a reasonable amount of time. Examples include the Southwest Arterial and the Julien Dubuque Bridge. Requested Action: Support efforts to continue the strategy for funding major transportation projects throughout the state. 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: Changes to assessment and valuation procedure, city and county budgeting processes, developing an alternative to current property tax limitations, elimination of the rollback formula and homestead exemption. Requested action: Work with the Iowa League of Cities 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. State Mandates Cities are often faced with implementing mandates from the state and federal governments without receiving the necessary funds for implementation I 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. FullvFundinQ Enrich Iowa ProQram Enrich Iowa is a state aid program for Iowa's libraries. Until recently, Iowa was one of 8 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 fully fund the Enrich Iowa program at $3 million statewide. Rescind House File 324 ReportinQ requirements In the 2001 General Assembly House File 324 (HF 324) was enacted. This law set up numerous new requirements for cities concerning bidding for street, bridge and culvert projects involving construction, reconstruction and improvements costing over $25,000 ($50,000 for cities over 50,000 in population). One requirement was a new report that is labor intensive and taxing to city public works departments. In addition to the report that cities currently submit on street receipts and expenditures using road use tax funds, the new report requires cities to provide detailed cost accounting for all projects within 90 percent of the bid threshold. The report also includes a statement of the cost of purchasing, leasing, or renting construction or maintenance equipment. Since the reports are extremely detailed and some cities do hundreds of street projects annually, this new requirement will entail a city needing additional resources. HF 324 did not charge the Iowa Department of Transportation to use this new report for any specific state purpose, resulting in 950 cities expending resources that could be used elsewhere. This becomes particularly onerous for small cities that publicly bid the majority of street projects. Requested Action: Support effort to reduce the reporting requirements for HF 324, Bed and Breakfast Tax Classification The State of Iowa department of revenue rule says that regardless of commercial use, a "single family dwelling" is to be classified for tax purposes as "residentiaL" The court of appeals agrees with this interpretation and states that because a bed and breakfast is used as a single family dwelling and a bed and breakfast and was constructed as a single family dwelling it fits the exception in the revenue rule that regardless of commercial use, a "single family dwelling" is "residential. This interpretation could have sweeping ramifications on 2 . I commercial and other property once constructed as residential but now zoned and operating as office, commercial or other non-residential use. Requested action: Adopt legislation that modifies the revenue rule on the classification of property so that bed and breakfast and other businesses operating in what were "single family dwellings" are taxed as commercial. 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 2003 to 28.21 % of wages in fiscal year 2006. The additional annual cost associated with the increases in the City's contribution to the police officer and firefighter retirement system is $1,210,203. The contribution rate for police officers and firefighters has remained unchanged since Fiscal Year 1997. Their contribution is 9,35% of wages. 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, cities contribution to the system should be reduced. 411 SubroQation 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. UnderaQe and BinQe DrinkinQ 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 3 '1 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. Expand Definition of Good Moral Character 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 municipalities local interpretation of "Person of Good Moral Character" prior to issuing a liquor license. Requested action: Review the definition 123.3(26)(d) "Person of Good Moral Character" by consideration to expand felony convictions to include appropriate indictable misdemeanors (i.e. convictions of OW.L (321J.2), Bootlegging (123.59) and other such liquor violations) Opportu n itvlowa Communities across the state are considering creating fiber optic utilities to provide a vehicle for companies to offer state-of-the-art services to citizens and business. Requested action: Resist efforts of cable T.V. companies to pass a state law to prohibit fiber optic utilities. Telecommunications Cities maintain and provide data on the location of public utilities, however, no information is available from telecommunication companies on the location of fiber optic and other telecommunication lines. This information is critical for negotiating development agreements for businesses desiring to expand or locate in a community. Requested action: Pass legislation requiring that all video, telecommunications and Internet providers provide a map of their infrastructure to each municipality they serve. Cultural and Entertainment District Incentives In 2004 the State of Iowa established a Cultural and Entertainment District program. The purpose of this program is to promote arts and culture in Iowa communities and to promote renovation of historic buildings to house cultural programs. The initial program was funded with $1 million in historic tax credits for 2005 and 2006 for eligible projects in these districts. This funding has since 4 '1 been removed and the program has no financial incentives for communities to become a Cultural and Entertainment District. Requested action: Approve funding for tax credits for properties located in State of Iowa recognized Cultural and Entertainment Districts. 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 $3,000 to $5,000; 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 employee 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. Airport FundinQ Designate at least $3 million a year for aviation projects and programs through the establishment of the new Aviation an Iowa Resource or AIR fund. Rebuild Iowa 5 ., Provide for continuation of Rebuild Iowa Infrastructure Fund appropriations for vertical infrastructure projects at both commercial and general aviation airports. Military Tax Credit The State of Iowa provides for veterans to receive a military tax credit on their property taxes. The credit reduces their City property tax by the levy rate of the City, which is $10,76 per $1,000 of valuation. The State, however, reimburses the City at a much lower rate, which potentially will be reduced again. This leaves a substantial deficit for other property owners to pay. Requested action: Enact legislation to fully reimburse cities for the State of Iowa's military tax credits. Expand Cities' Extraterritorial Jurisdiction Cities have extraterritorial jurisdiction (ET J) 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' ET J to include review and approval of zoning changes would facilitate planned and managed growth. Legislation should provide incentives for governments to voluntarily plan 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 ET J of cities to include review and approval of zoning changes. Requested action: Support legislation enabling cooperative planning and effective land management practices. Eliminate the "20% Objection Rule" for Rezoninç¡s Section 414.5 of the Iowa Code requires a favorable vote by three-fourths of the City Council members - a 6 to 1 vote - to approve a rezoning request over the written objections of 20 percent or more of the owners of the property being rezoned, or 20 percent or more of the property owners within 200 feet of the subject property. The concepts that nearby property owners have a say in rezoning cases is valid; however, this must be balanced against the needs of the entire community. At 20 percent, a minority of property owners can dictate the outcome of community development, especially when one property owner with a large tract of land can constitute the entire 20 percent. Requested action: Raise the "objection percentage" of owners of property within 200 feet from 20 percent to a simple majority (51 %); or require a favorable vote by two-thirds of the City Council members, or a 5 to 2 vote, when the objection threshold is reached. 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 6 " 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 historic districts on the Historic Preservation Commission. Appeal of Actions bv 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. Ambiant Air Qualitv Rules In July 2004 the Environmental Protection Commission set H2S limites 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 effect 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. 7 '. IOWA LEAGUE OF CITIES 2005 LEGISLATIVE PRIORITIES Efficient Government Priority: Seek financial and legislative incentives that encourage regional planning and service sharing arrangements among governments including cities, counties, schools and state government. Mandate Relief Priority: Support legislation calling for relief from mandates that negatively impact the ability to provide city services. Examples include but are not limited to setting a percentage for taxation of residential property, increasing the public bid threshold, streamlining the municipal bond financing process, reducing publication costs and addressing rising employee benefit costs. City Revenues Priority: Support legislation expanding Home Rule options for city revenue sources to cover critical services to ensure safety and quality of life for residents. Revenue alternatives contribute to reduction of reliance on property taxes and include but are not limited to municipal fees, local income taxes, increased sales and hotel/motel taxes and new funding options for public safety, Economic Development and TIF Priority: Support initiatives that provide tools for cities to serve as economic catalysts for Iowa. This includes enhancement of tax increment financing (TIF) through minimal changes, and continuation and expansion of the Community Attraction and Tourism (CAT) program beyond 2004. 8 D~ ~~~ MEMORANDUM October 26, 2003 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: City of Dubuque State Legislative Issues for the 2005 Session Assistant City Manager Cindy Steinhauser has prepared the attached list of legislative issues for the 2005 Legislative Session. These will be used at the City's annual Legislative Dinner to be held at the Dubuque Greyhound Park and Casino on November 10, 2004, at 5:30 p.m. I respectfully recommend adoption of the City of Dubuque State Legislative Issues for the 2005 Legislative Session. /11~L{ Ú~1 11¿jf- Miéhael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager City Of Dubuque State Legislative Issues For The 2005 Session State BudQet In response to a revenue shortfall during last session the State of Iowa implemented across-the-board cuts in expenses. Some of these cuts reduced revenues to cities, with no relief to cities for state-mandated programs. Concerns remain over the impact of the reduced revenue to cities and that similar action will be taken in the 2005 session. Reduced state revenues negatively impact property taxes. Requested Action: The state should restore revenues to cities that were cut in 2003 and 2004 in an effort to make cities whole. FundinQ 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, which require significant funding commitments for completing the projects in a reasonable amount of time. Examples include the Southwest Arterial and the Julien Dubuque Bridge. Requested Action: Support efforts to continue the strategy for funding major transportation projects throughout the state. 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: Changes to assessment and valuation procedure, city and county budgeting processes, developing an alternative to current property tax limitations, elimination of the rollback formula and homestead exemption. Requested action: Work with the Iowa League of Cities 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. 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. Fully FundinQ Enrich Iowa ProQram Enrich Iowa is a state aid program for Iowa's libraries. Until recently, Iowa was one of 8 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 fully fund the Enrich Iowa program at $3 million statewide. Rescind House File 324 ReportinQ requirements In the 2001 General Assembly House File 324 (HF 324) was enacted. This law set up numerous new requirements for cities concerning bidding for street, bridge and culvert projects involving construction, reconstruction and improvements costing over $25,000 ($50,000 for cities over 50,000 in population). One requirement was a new report that is labor intensive and taxing to city public works departments. In addition to the report that cities currently submit on street receipts and expenditures using road use tax funds, the new report requires cities to provide detailed cost accounting for all projects within 90 percent of the bid threshold. The report also includes a statement of the cost of purchasing, leasing, or renting construction or maintenance equipment. Since the reports are extremely detailed and some cities do hundreds of street projects annually, this new requirement will entail a city needing additional resources. HF 324 did not charge the Iowa Department of Transportation to use this new report for any specific state purpose, resulting in 950 cities expending resources that could be used elsewhere. This becomes particularly onerous for small cities that publicly bid the majority of street projects. Requested Action: Support effort to reduce the reporting requirements for HF 324. Bed and Breakfast Tax Classification The State of Iowa department of revenue rule says that regardless of commercial use, a "single family dwelling" is to be classified for tax purposes as "residentiaL" The court of appeals agrees with this interpretation and states that because a bed and breakfast is used as a single family dwelling and a bed and breakfast and was constructed as a single family dwelling it fits the exception in the revenue rule that regardless of commercial use, a "single family dwelling" is "residential. This interpretation could have sweeping ramifications on 2 commercial and other property once constructed as residential but now zoned and operating as office, commercial or other non-residential use. Requested action: Adopt legislation that modifies the revenue rule on the classification of property so that bed and breakfast and other businesses operating in what were "single family dwellings" are taxed as commercial. 411 SubroQation The City of Dubuque's contribution to the retirement system for police officers and firefighters went from 17% of wages in fiscal year 2003 to 28.21 % of wages in fiscal year 2006. The additional annual cost associated with the increases in the City's contribution to the police officer and firefighter retirement system is $1,210,203. The contribution rate for police officers and firefighters has remained unchanged since Fiscal Year 1997. Their contribution is 9.35% of wages. 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, cities contribution to the system should be reduced. Underaqe and BinQe Drinkinq 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. Expand Definition of Good Moral Character 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 municipalities local interpretation of "Person of Good Moral Character" prior to issuing a liquor license, 3 Requested action: Review the definition 123.3(26)(d) "Person of Good Moral Character" by consideration to expand felony convictions to include appropriate indictable misdemeanors (i.e. convictions of OW.L (321J.2), Bootlegging (123.59) and other such liquor violations) Opportunitylowa Communities across the state are considering creating fiber optic utilities to provide a vehicle for companies to offer state-of-the-art services to citizens and business. Requested action: Resist efforts of cable TV. companies to pass a state law to prohibit fiber optic utilities. Telecommunications Cities maintain and provide data on the location of public utilities, however, no information is available from telecommunication companies on the location of fiber optic and other telecommunication lines. This information is critical for negotiating development agreements for businesses desiring to expand or locate in a community. Requested action: Pass legislation requiring that all video, telecommunications and Internet providers provide a map of their infrastructure to each municipality they serve. Cultural and Entertainment District Incentives In 2004 the State of Iowa established a Cultural and Entertainment District program. The purpose of this program is to promote arts and culture in Iowa communities and to promote renovation of historic buildings to house cultural programs. The initial program was funded with $1 million in historic tax credits for 2005 and 2006 for eligible projects in these districts. This funding has since been removed and the program has no financial incentives for communities to become a Cultural and Entertainment District. Requested action: Approve funding for tax credits for properties located in State of Iowa recognized Cultural and Entertainment Districts. 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. 4 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 $3,000 to $5,000; 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 employee 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. Airport Fundinq Designate at least $3 million a year for aviation projects and programs through the establishment of the new Aviation an Iowa Resource or AIR fund. Rebuild Iowa Provide for continuation of Rebuild Iowa Infrastructure Fund appropriations for vertical infrastructure projects at both commercial and general aviation airports. Military Tax Credit The State of Iowa provides for veterans to receive a military tax credit on their property taxes. The credit reduces their City property tax by the levy rate of the City, which is $10.76 per $1,000 of valuation. The State, however, reimburses the City at a much lower rate, which potentially will be reduced again. This leaves a substantial deficit for other property owners to pay. Requested action: Enact legislation to fully reimburse cities for the State of Iowa's military tax credits. 5 Expand Cities' Extraterritorial Jurisdiction Cities have extraterritorial jurisdiction (ET J) 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' ET J to include review and approval of zoning changes would facilitate planned and managed growth. Legislation should provide incentives for governments to voluntarily plan 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 ET J of cities to include review and approval of zoning changes. Requested action: Support legislation enabling cooperative planning and effective land management practices, Eliminate the "20% Objection Rule" for RezoninQs Section 414.5 of the Iowa Code requires a favorable vote by three-fourths of the City Council members - a 6 to 1 vote - to approve a rezoning request over the written objections of 20 percent or more of the owners of the property being rezoned, or 20 percent or more of the property owners within 200 feet of the subject property. The concepts that nearby property owners have a say in rezoning cases is valid; however, this must be balanced against the needs of the entire community. At 20 percent, a minority of property owners can dictate the outcome of community development, especially when one property owner with a large tract of land can constitute the entire 20 percent. Requested action: Raise the "objection percentage" of owners of property within 200 feet from 20 percent to a simple majority (51 %); or require a favorable vote by two-thirds of the City Council members, or a 5 to 2 vote, when the objection threshold is reached. 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, 6 Requested action: Enact legislation allowing property owners to represent 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. Ambiant Air Quality Rules In July 2004 the Environmental Protection Commission set H2S limites 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 effect 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. 7 IOWA LEAGUE OF CITIES 2005 LEGISLATIVE PRIORITIES Efficient Government Priority: Seek financial and legislative incentives that encourage regional planning and service sharing arrangements among governments including cities, counties, schools and state government. Mandate Relief Priority: Support legislation calling for relief from mandates that negatively impact the ability to provide city services. Examples include but are not limited to setting a percentage for taxation of residential property, increasing the public bid threshold, streamlining the municipal bond financing process, reducing publication costs and addressing rising employee benefit costs. City Revenues Priority: Support legislation expanding Home Rule options for city revenue sources to cover critical services to ensure safety and quality of life for residents. Revenue alternatives contribute to reduction of reliance on property taxes and include but are not limited to municipal fees, local income taxes, increased sales and hotel/motel taxes and new funding options for public safety. Economic Development and TIF Priority: Support initiatives that provide tools for cities to serve as economic catalysts for Iowa. This includes enhancement of tax increment financing (TIF) through minimal changes, and continuation and expansion of the Community Attraction and Tourism (CAT) program beyond 2004. 8