Legislative Positions for 2001 Legislative Session
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CITY OF DUBUQUE, IOWA
MEMORANDUM
October 31, 2000
TO:
The Honorable Mayor and City Council
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Legislative Issues for 20001
Assistant City Manager Tim Moerman has worked with staff, and as a member of
the Iowa League of Cities' Legislative Policy Committee, I have coordinated with
the Iowa League to formulate a list for consideration as the City's legislative
priorities.
I respectfully recommend Mayor and City Council approval of these priorities for
presentation to Legislators.
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City Manager
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Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
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CITY OF DUBUQUE, IOWA
MEMORANDUM
October 31, 2000
FROM:
Michael C. Van Milligen, City Manager
Tim Moerman, Assistant City Manager77J1.-
TO:
SUBJECT: Legislative Issues for 2001
The Legislative Session for 2001 will be here soon. One of the steps of the legislative
process is the development of a list of City Council legislative priorities. I have gathered
input from City staff and the League of Iowa Cities on issues which they believe the
Legislature should address in the upcoming session. The attachment is a draft
summary of the possible legislative priorities, including a description of the issue and
the action requested.
The next step in the process is for the City Council to review the draft of the legislative
issues and provide feedback. A final draft will then be presented to the City Council for
their approval and be presented to the legislators at the November 29 legislative dinner.
Please let me know if you need any additional information.
TM/ksf
CITY OF DUBUQUE
STATE LEGISLATIVE ISSUES
FOR 2001 SESSION
Issues identified by City staff for the 2001 session
Funding 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, such as the Southwest Arterial, the Julien Dubuque Bridge and Highway
20/Dodge Street.
REQUESTED ACTION: Support efforts to continue the strategy for funding of major
transportation projects throughout the state.
Freezing the Escalating State Tax on Gaming Revenues
The State of Iowa currently levies a tax gaming operations of 5% on the first $1,000,000
of the adjusted gross receipts, 10% on the next $2,000,000 and 28% on the rest of the
adjusted gross receipts. The tax rate will increase at a rate of 2% each year until it
reaches 36% in the Year 2004. The scheduled increases in the tax rate will have a
devastating effect on the future of gaming operations in Iowa, especially Dubuque
Greyhound Park & Casino. Riverboats have no escalating tax and pay 20%.
REQUESTED ACTION: Enact legislation that eliminates the current escalator tax, or
set the tax rate at 23.7% for all gaming operations, riverboats included, which would be
revenue neutral to the State.
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 $3000-5000; -rental subsidy programs average $2500-3000
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 on withholding on 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 employees 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.
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
$10.71 per $1,000 of valuation. The State, however, reimburses the City only $6.92 per
$1,000 of valuation and leaves a $31,650 deficit for other property owners to pay.
REQUESTED ACTION: Enact legislation to fully reimburse cities for the State of Iowa's
military tax credits.
Reimbursement Rates for Police Training
Cities are required to send new police officers to the Iowa Law Enforcement Academy
for 12 weeks of training at a cost of $13,000 per officer. This investment in the officer's
training is lost if the officer leaves the force soon after the training. The State is
currently phasing out a program to reimburse cities for these costs which was funded in
the amount of $47,500 for the entire state.
REQUESTED ACTION: Enact legislation to provide a higher level of reimbursement for
the losses cities incur when law enforcement officers leave a force soon after the
training.
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Property Tax Reform
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. It is the result of many
years of adopting tax changes that mayor may not be consistent with previous laws or
tax policies. Often the tax policies are contradictory, such as the residential rollback's
shift of tax burden from residential to commercial and industrial property owners, and
the elimination of machinery and equipment tax which shifts the tax burden from
industrial to residential and commercial property owners.
REQUESTED ACTION: Perform a comprehensive review of the entire tax structure of
the State of Iowa and design a tax structure that provides tax equity and policies that
are consistent with an overall direction for state and local government taxation.
Eliminate the "20% Objection Rule" for Rezonings
Section 414.5 of the Iowa Code requires a favorable vote by three-fourths of the City
Council's members, or a 6 to 1 vote, to approve a rezoning request over the written
objections of 20% or more of the owners of property being rezoned, or 20% 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%, a
minority of the 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%.
REQUESTED ACTION:
Raise the "objection percentage" of owners of property within 200 feet from 20% to a
simple majority; 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 as Representatives of Historic Districts 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.
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REQUESTED ACTION
Enact legislation which allows for property owners to represent historic districts on the
Historic Preservation Commission.
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 which exempts local government from providing any new service or
engaging in any new activities if the state does not provide full funding.
Skate Park Liability
The Iowa Code provides liability for cities for persons using roller blades and skate
boards in skate parks. There is a strong interest by bicyclists to use the skate parks.
However, the Iowa Code does not exempt cities from liability for skate parks used by
bicyclists.
REQUESTED ACTION:
Enact legislation that exempts cities from liability for skate parks used by bicyclists.
Juvenile Detention Facilities
Dubuque's local law enforcement community is in need of a more conveniently located
juvenile detention facility. State funding is needed to support a local facility.
REQUESTED ACTION: Enact legislation that provides funding to build and operate a
juvenile detention facility in Dubuque County.
Alternative Revenue Sources
Cities in Iowa have seen the erosion of federal and state funding in the past several
years. This has forced cities to rely more heavily on property taxes to fund the delivery
of public services. The state should try to assist cities in reducing their reliance on the
property tax. Allowing use of additional alternative revenue sources would help to
accomplish this.
REQUESTED ACTION: Enact legislation that creates alternative revenue sources for
municipalities.
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Provision of Child Day Care
The major changes in the welfare delivery system in the past years will have impacts on
citizens, businesses, agencies and all levels of government. The requirements that
recipients acquire a job or attend an educational institution will cause people to be away
from the home more frequently. The trend is also continuing in which both parents of a
family work outside of the home to maintain an adequate standard of living. These
changes and trends are creating an increase in the need for quality child day care by
families.
REQUESTED ACTION: Enact legislation which provides solutions and funding for day
care services for families.
Traffic Charges Based on Vehicle Registration
Photo enforcement of traffic is becoming more common in law enforcement. In fact,
Dubuque is being considered as one of two sites in Iowa for a pilot project for such
enforcement. Most applications of this technology take identifiable photos of the
vehicle and license plate, but generally are not able to obtain an identifiable photo of
the driver.
REQUESTED ACTION: Enact legislation which would allow filing and prosecution of
certain traffic charges based on vehicle registration as opposed to specific identification
of the driver. This would facilitate photo enforcement of traffic light violations and photo
radar enforcement.
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League of Iowa Cities Positions for the 2001 session
Priorities:
1. Preserve city authority to utilize tax increment financing
2. Pursue legislation that provides for a more equitable distribution of the
property tax burden among classes of property
3. Establish a 50 percent floor on the residential rollback
4. Prevent imposition of a property tax limitation on local government
5. Allow an inflationary adjustment to the square footage fee assessed to mobile
homes
6. Exempt municipal swimming pools from sales tax
7. Pursue legislation that reduces the impact of commercial and industrial valuation in
calculating the machinery and equipment (M & E) tax reimbursement for
communities that contain a substantial amount of M & E in the tax base. A financial
safety net should also be provided for all communities that demonstrate a
compelling need for additional revenue due to M & E loss.
Other Important Issues:
1. Eliminate the administrative fee on local option sales tax
2. Pursue legislation that equitably distributes the cost of law enforcement
protection among citizens and correlates those costs based on services
rendered
3. Pursue legislation directing an interim study of Road Use Tax Fund and a
review of the current allocation formula
4. Seek additional funding to enhance and build upon the Brownfield
Redevelopment Program
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