Legislators support - MFPRSofIAFebruary 22, 2000
FIELD(title)
FIELD(name)
FIELD(address)
FIELD(city, state, zip)
Dear fIEL[¡(salutation):
A bill will be coming out of the Senate State Government Committee shortly concerning the
contribution cities make to the Municipal Fire and Police Retirement System of Iowa
(MFPRSI). This bill provides the opportunity for cities to give property tax relief to its
citizens without a negative impact on persons in the retirement system.
Cities' contribution to the MFPRSI is currently at 17 percent of wages. The mandated rate
of 17 percent results in an over funding of the system by nearly 6 percent. One option for
the Legislature is to reduce the contribution from 17 percent to 14 percent. This change
would allow for the continued full-funding of the system and provide pure property tax
relief for the citizens, even though it does not reduce the contribution by the full 6 percent
over funding. -
The impact on the City of Dubuque is a decrease of $229,433, which equates to a
decrease in the tax levy of over $.16 per $1,000 of valuation, or 1.5%. The property
decrease state-wide would be $4.5 million. The Legislature can be assured that this
proposal would result in a property tax reduction because pensions are funded in the trust
and agency levy. A lower required contribution means a lower tax asking on this levy.
The City of Dubuque supports the proposed changes to the contribution rate for MFPRSI
from 17 percent to 14 percent.
Please contact me if you have any questions on this issue.
Sincerely,
Michael C. Van Milligen
City Manager
cc
Mayor Terry Duggan
Dubuque City Council Members
Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Pauline Joyce, Administrative Services Manager
The Honorable Paul Scherrman
House Chamber
State Capitol Building
.Des Moines, IA 50319
The Honorable Pam Jochum
House Chamber
State Capitol Building
Des Moines, IA 50319
The Honorable Pat Murphy
House Chamber
State Capitol Building
Des Moines, IA 50319
The Honorable Robert Osterhaus
House Chamber
State Capitol Building
Des Moines, IA 50319
The Honorable Mike Connolly
Senate Chamber
State Capitol Building
Des Moines, IA 50319
The Honorable Tom Flynn
Senate Chamber
State Capitol Building
Des Moines, IA 50319
8
8
ACTION CALL
TO:
411 cities - Mayas, City Managers
FROM:
Tracy Kasson, Director of Governmental Affairs
SUBJECT:
Public Employee Pension Bill
Cities have a golden opportunity to provide some relief to property taxpayers if the Legislature
will allow it to happen! The city share of Municipal Fire and Police Retirement System ofIowa
(MFPRSI) is mandated at a 17 percent minimum contribution. This mandated floor has resulted
in overfunding the MFPRSI system by nearly 6 percent. This contribution is funded by the
taxpayers and the time has come to lower the taxpayer burden by lowering the city contribution to
14 percent. This will result in a $4.5 million annual reduction in taxes for taxpayers in MFPRSI
cities.
Sentiment among lawlIl8kers is favorable to giving some relief to taxpayers and this is our best
opportunity in years to lower the rate. Groups interested in maintaining the city contribution at its
high 17 percent level are working to reverse the momentum on this issue. The pension bill will
be debated and voted out of the Senate State Government Committee next week. 11 is imperative
that you contact your lawmaker on this committee and urge him or her to support lowctlng the
mandatory contribution to the 411 system from 17 to 14 percent. If lawmakers do not hear from
city officials, we may ultimately end up with the status quo.
Actíon Steps:
1. Contact your senator if he or she is a member of the Senate State Government Committee and
urge support for lowering the city contribution to 14 percent. Stress the fact that because
pensions are funded In the trust and agency levy, any reduction constitutes direct property tax
relief to the taxpayers. Attached is the specific reduction your community would enjoy.
2. Even if your senator does not serve on the State Government Committee, call and
encourage him or her to speak with committee members about lowering the floor. Senate
Switchboard 515.281.3371.
3.
Contact the League with your lawmaker's response.
Senate State Gove1'l\ll12nt Committee
Sheldon Rittmer (Chair) - Bettendorf, Camanche
Clinton, DeWitt
Jack Klbbie - Estherville, Spencer
Dick Dearden - Des Moines
Dick Drake - Muscatine
Steve KIng - no 411 city
Gene Maddox - Clive, Des Moines, UrbandaJe
Neal Schuerer - no 411 city
Elaine Szymoniak - Des Moines
Jeff Lamberti - Ankeny
Mike Connolly - Dubuque
Pat Deluhery - Davenport
Bill Fink - Indianola, Knoxville
Mary Lundby - Cedar Rapids, Marion
Derryl McLaren - no 411 city
Mike Sexton - Fort Dodge
Action Call Number 00-02
February 18, 2000
Iowa League of Cities
515-244-7282
City Savings if MFPRSI Contribution Rate was 14% Instead of 17%
Ames- $137,000
Ankeny- $50,000
Bettendorf- $87,000
Boone- $39,469
Burlington- $101,479
Camanche- $10,600
Cedar Fall.- $85,000
Cedar Rapid.- $452,528
Centerville-
$14,739
$20,000
Charles City-
Clinton-
$116,000
Cooncil Bluff.- $282,353
Creston- $20,093
Davenpott- $422,000
Decorah- $14,573
DeWitt- $9912
Dubuque- $229,433
E.tervllle- $11,500
Evansda1e- $6428
Fairfield- $15,688
Fort Dodge- $92,030
Grinnell- $22,339
Iowa City- $171,537
Keokuk- $47,053
Knoxville- $12,667
LeMars- $15,800
Maquoketa- $11,156
Madon- $68,939
Marshalltown- $98,678
Mason City- $82,000
Muscatine- $$85,189
Newton- $72,000
Oelwein- $13,534
Ottumwa- $70,000
Oskaloosa- $32,578
Sioux City- $310,976
Spencer- $27,967
Storm Lake- $20,109
Waverly- $15,084
Waterloo- $290,000