IA League Cities Priorities 05
IOWA LEAGUE Qf CITIES
.
Prioritie
The League's mission is to keep cities moving forward through innovation, efficiencies, and
collaboration. Doing so allows cities the ability to provide essential services and quality of life
programs and facilities. More than 77 percent of Iowans live within a city and the League and its
members want to ensure that these citizens are safe and able to the enjoy life within their com-
munity, regardless of its size. Small, medium or large, each city is unique and must be embraced.
For while some city services may vary, the hometown feel of an Iowa community will not.
Members of the Iowa League of Cities adopted five legislative priorities for 2005 focusing on
areas important to the future of their communities. These legislative priorities include compre-
hensive components for property tax reform, economic development, infrastructure investment,
community safety, and representative government. All five priorities are aimed at achieving one
common goal: Giving cities the opportunity to continue building on past accomplishments while
paving the way into the future.
Many factors have led to calls for comprehensive property tax reform in Iowa, from the
governor calling the system "broken" to proposed bills that failed to address significant
problems in the current system. The Iowa League of Cities and the Iowa State Association
of Counties are proposing a comprehensive package of reforms designed to increase
accountability, equity, and stability in Iowa's tax system. Highlights of the proposal include
three areas of focus: 1) Assessment and Valuation; 2) Budgeting and Taxation; and 3) Constraints and Limitations.
Assessment and Valuation Property needs to be valued so the property owner pays an appropriate share of the tax
burden. The property tax base should be broadened and the rollback formula eliminated. Under the proposal, the state
would no longer pay over $100 million for the homestead credit, which has become too small to adequately help taxpay-
ers. It would be replaced with a 50 percent homeowner's exemption worth between $10,000 and $150,000.
Budgeting and Taxation Reforming the property tax structure means improving accountability among all levels of
government. Citizens will gain more understanding from improved budget forms and more information public hear-
ings. They will also be able to monitor their cities' and counties' policies regarding target ending balances in certain
funds. The state should fund any property tax credits it approves and any mandates it implements.
Constraints and Limitations Restraints imposed on city and county budgets should be fundamentally changed.
Under the proposal the $8.10 general fund levy limit for cities and the general basic and rural basic level for counties
will be removed. In their place, an inflationary property tax limitation will be imposed on those funds to directly limit
the total amount of property taxes levied while still leaving local govemments with fiscal flexibility.
This comprehensive tax reform would result in many property owners, especially commercial property owners, pay-
ing less in property taxes. Alternative revenue sources can provide further reductions. For example, cities must keep the
ability to collect a utility franchise fee, and the cap on the hotel/motel tax should be increased.
Investment
Priority: Support legislation that protects and in Iowa's street
and highway infrastructure through an equitable allocation of rev-
enues between '$tate, county and city government, Increase the
$25,000 bid threshold for public improvements to eáse administration
costs incurred in small vertical infrastructure projects.
Street and highway infrastructure is essential to ensuring the safety of
citizens and the economic vitality of Iowa. Neither of these goals can be
achieved unless a continued investment is made into both the state and local street and highway infrastructure. Citizens
always want what is closest to them to be fixed first. Faced with a Jimited amount of road use tax fund (RUTF) dollars,
cities are forced to spend on new construction needs or the mainte1\ance and repair of existing infrastructure. After spend-
ing RUTF money, construction needs must then come out of the city's general fund or be borrowed via ¡¡ loan that falls
within the city's debt capacity.
Safety is p¡¡ramount in terms of keeping a well-maintained infrastructure, Today, manyJowans commute to and fro.",
work. They drive on highways and streets that are widely interconnected, so it is . tant th"t the infrastructure system'
be supported as a whole, Past legislation has enco1.11'¡[ged Cities and co ' òn the needs
highw¡¡ys between théir juriSdictions, and it is essentîà1 to continue thi . .
The public bid threshold Was .established to ba.lance the ability of locål.goverritnent tosp.nd taxp'ayers'm
public pr()j,ects. Sp'eridingpublic money.istinÝtmey for P"!'>.je~
scalêcan'¡'éman¡¡ged weflwithou oldt-Gr ve
LoITie Bennett, City Administrator,
Humboldt, (515) 332-3435
Robert Blok, Council Member, Asbury, (563) 683-4436
Nancy Carmichael, City Clerl<jTreasurer,
Coming, (641) 322-4230
Carol Ann Diekema, City Coordinator,
Monroe, (641) 259.3490
Julie Egland, Council Member,
StOITn Lake, (712) 732-8000
Mary Gross, Mayor, Holstein, (712) 368-4898
Marl<Jackson, City Administrator,
Story City, (51S) 733-2121
AJ. Johnson, City Administrator,
Muscatine, (563) 264-1550
Walter Mcintosh, Mayor,
Ume Springs, (563) 566-4405
Oan Nicholson, Council Member,
Dubuque, (563) 589-4100
Jeff Pomeranz, City Manager,
West Des Moines, (515) 222-3610
Dee Vanderhoef, Council Member,
Iowa City, (319) 356-5010
Chris Ward, City Manager,
West Uberty, (319) 627-2418
Peggy White, Council Member,
CaITolI, (712) 792-1000
Prioritie
The League's mission is to keep cities moving forward through innovation, efficiencies, and
collaboration. Doing so allows cities the ability to provide essential services and quality of life
programs and facilities. More than 77 percent of Iowans live within a city and the League and its
members want to ensure that these citizens are safe and able to the erD°Y life within their com-
munity, regardless of its size. Small, medium or large, each city is unique and must be embraced.
For while some city services may vary, the hometown feel of an Iowa community will not.
Members of the Iowa League of Cities adopted five legislative priorities for 2005 focusing on
areas important to the future of their communities. These legislative priorities include compre-
hensive components for property tax reform, economic development, infrastructure investment,
community safety, and representative government. All five priorities are aimed at achieving one
common goal: Giving cities the opportunity to continue building on past accomplishments while
paving the way into the future.
Many factors have led to calls for comprehensive property tax reform in Iowa, from the
governor calling the system "broken" to proposed bills that failed to address significant
problems in the current system. The Iowa League of Cities and the Iowa State Association
of Counties are proposing a comprehensive package of reforms desii,'1'ed to increase
accountability, equity, and stability in Iowa's tax system. Highlights of the proposal include
three areas of focus: 1) Assessment and Valuation; 2) Budgeting and Taxation; and 3) Constraints and Limitations.
Assessment and Valuation Property needs to be valued so the property owner pays an appropriate share of the tax
burden. The property tax base should be broadened and the rollback formula eliminated. Under the proposal, the state
would no longer pay over $100 million for the homestead credit, which has become too small to adequately help taxpay-
ers. It would be replaced with a 50 percent homeowner's exemption worth between $10,000 and $150,000.
Budgeting and Taxation Reforn1ing the property tax structure means improving accountability among allleve1s of
government. Citizens will gain more understanding from improved budget forms and more information public hear-
ings. They will also be able to monitor their cities' and counties' policies regarding target ending balances in certain
funds. The state should fund any property tax credits it approves and any mandates it implements.
Constraints and Limitations Restraints imposed on city and county budgets should be fundamentally changed.
Under the proposal the $8.10 general fund levy limit for cities and the genera] basic and rural basic level for counties
will be removed. 1n their place, an inflationary property tax limitation will be imposed on those funds to directly limit
the total amount of property taxes levied while still leaving local govemments with fiscal flexibility.
This comprehensive tax reform would result in many property owners, especially commercial property ovmers, pay-
ing less in property taxes. Altemative revenue sources can provide further reductions. For example, cities must keep the
ability to collect a utility franchise fee, and the cap on the hotel/motel tax should be increased.