City of Dubuque State Legislative Issues for the 2012 SessionMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Correction to City of Dubuque State Legislative Issues
for the 2012 Session
Consent Item #27 - December 5, 2011
DATE: December 2, 2011
Dubuque
kattgi
All America City
1
2007
Assistant City Manager Teri Goodmann is transmitting a correction to the City of
Dubuque State Legislative Issues for the 2012 Session, Consent Item #27 on the
December 5, 2011 City Council Agenda.
.IA/1144 k3014:,
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Teri Goodmann, Assistant City Manager
SUBJECT: 411 Amendment to the 2012 State Legislative Priorities
DATE: December 2, 2011
Dubuque
All AmencaCity
�.
2007
Please amend language for the Draft 2012 State Legislative priority document under
the heading "411 contributions" in the City Council packet to read as follows:
The State of Iowa shall contribute to the MFPRSI. Current law provides for employees
to contribute no more than 9.4% and cities no less than 17 %. In recent years cities
have been forced to increase their payment to the retirement system to 28.21% in 2006,
24.76% in 2012, 26.12% in 2013 and a projection of 30.12% in 2015.
These pension contributions by the 49 cities participating in the MFPRSI are a large
cost driver in city budgets and have forced and will force cities to raise property taxes to
generate revenue to pay for these burdensome expenses.
To provide relief to the 49 cities participating in the MFPRSI the State will contribute to
the system the remaining difference after the member pays their statutorily required
9.4% and the cities pay their statutorily required 17% into the system.
City Of Dubuque
State Legislative Issues
For The 2012 Session
State Historic Tax Credits
The Iowa Historic Preservation Tax Credit was passed in May 2000 to promote investment in
our historic resources in communities, codified in Section 404A.4. Rehabilitation of these
resources contributes to the economic viability as well as the strength of our communities. The
secondary impacts of this historic tax credit on our communities are countless. The program
provides a tax credit of 25% of the qualified rehabilitation expenses for qualified projects. Thus,
each credit represents an investment in our community of at least four times the amount of the
credit. Additional revenues are generated through increased property taxes, income taxes, and
sales taxes.
The cap for the program is currently set at $50 million per year.
Dubuque has benefited from 20 state historic tax credit projects, more than any other city in the
State of Iowa, which has added far more to our financial system than a simple single storefront
project as listed above. A sample of the impact is as follows:
Project New Jobs
Security Building 90
Town Clock Building 60
Heartland Building 45
Platinum Building 110
Star Brewery 170
Cooper Wagon Works /Bricktown 65
German Bank 25
Roshek Building 1,300
Hotel Julien 57
Caradco 75 (estimate)
Total 1,997 new permanent jobs
These projects have added well over 1,997 permanent jobs to our economy, not including the
construction jobs to complete the large projects. These 1,997 people would equate to a $ 85
million annual payroll.
Critical workforce housing needs in the City of Dubuque make state historic tax credits and
other financial incentives a top priority as the City works to promote redevelopment and
reinvestment in our urban core.
Requested Action:
Maintain the state historic tax credit program at the current level with a goal of removing the cap
on the historic preservation tax incentives. Work to ensure that the administrative rules support
private sector development and best practices.
1
Smart Growth Workforce Housing
Creation of the Smart Growth Workforce Housing grant program under the discretionary
policy of the Iowa Finance Authority provides greater opportunity for the City of Dubuque and
its partners to stabilize the community and will prioritize environmentally - sustainable
development and will promote economic development. This grant program was established in
the 2010 legislative session. The program needs funding appropriations to become available
effective FY2012.
Definition
Smart Growth practices are settlement patterns that avert urban sprawl by encouraging more
compact development, greater transit use, and enhanced environmental protection. Workforce
housing is normally defined as housing affordable to households earning between 80 percent
and 120 percent area median income (AMI). Affordable, in the housing industry, means a
household pays no more than 30 percent of its annual income on housing. Smart Growth
Workforce Housing is the combination of these concepts — the development of sustainable,
transit - oriented housing that is affordable for our workforce.
What can our workforce households afford to pay for housing? "The National Housing Act of
1937 created the public housing program... [wherein] a tenant's income could not exceed five to
six times the rent; and by 1940 income limits gave way to the maximum rent standard in which
rent could not exceed 20 percent of income — in practice, the same as the predecessor income
limit standard. Over the decades, that percentage has risen, so that by 1981 the threshold was
set at 30 percent of income. Households that spend over 30 percent of income on housing are
considered cost burdened. Why the increase? Was it truly deemed a more appropriate
benchmark? Or was it simply in response to an increase in housing costs and the
government's inability to subsidize housing for an ever - growing number of struggling
households?
Using the current industry standard of spending up to 30 percent of gross income for gross
housing costs (including tax, insurance, & utilities), workforce households could be expected to
spend the maximum amounts indicated in the table below. Housing markets differ greatly, but
we know that rents run much higher than these net rent levels in many areas; and conversely,
these rents are simply unattainable in other areas like Dubuque due to lower local prevailing
wages. The mortgage levels listed below would service a 30 -year mortgage valued between
$83,000 and $125,000, whereas the current median sale price for homes in Dubuque is
$121,800 — barely within reach for the upper end of our workforce.
Workforce
Households
(Dubuque)
Dubuque
Gross
Annual
Income
Gross
Monthly
Affordable
Net Affordable
Net Affordable
Rent
Mortgage Pmt.
(w /o utilities)
(w/o utilities,
tax &
insurance)
Housing
Cost
80 %AMI
$35,700
$881
$661
$581
120 %AMI
$53,520
$1,321
$991
$872
2
Over the past decade, rising housing costs have outpaced the average salary across the United
States — in some areas by two- to five -fold. Many workers in urban areas have dealt with this
discrepancy by living far from their downtown jobs or by living in housing they can't afford.
Unfortunately, the former solution is offset by an increase in transportation costs. And what is
the price we pay for the latter solution? "Families who pay more than 30 percent of their income
for housing are considered cost burdened and may have difficulty affording necessities such as
food, clothing, transportation and medical care." In fact, a full 37% of homeowners and 50%
of renters today are cost burdened.
Fortunately, housing costs in smaller urban and rural areas are often within closer reach for .
workforce households. However, in areas where vacancy rates are low — calling for the
production of new units — development of quality housing is financially impossible, as
operational income on the properties is not enough to cover interest payments on the project
mortgage. Low local rent levels, although beneficial for tenants, preclude developers
from creating new units, despite a community's housing shortage. For this reason, many
developers have turned to the LIHTC program to make their projects financially feasible,
whether or not this fulfills the community's particular housing demand.
Meanwhile, the recent economic downturn and housing market woes have combined to create a
new class of workers, forced into the rental market because they do not qualify for a mortgage.
Displaced workers with homes that won't sell, families who've had their homes foreclosed,
young professionals with student loans, and households that might otherwise be able to afford
mortgage payments if only they could come up with the higher requisite down payment
demanded in a tight lending climate — all of these are moving into the rental market. This
creates a rather sudden increase in the demand for rental residential units for households that
are neither wealthy, nor are they eligible for low- income housing.
The creation of affordable housing options for our workforce allows communities to attract and
retain quality employers. If the only housing that developers can afford to produce is intended
for low- income or wealthy households, we should not be surprised to see such a disparity in our
communities' income levels. To have a healthy mix of incomes, we must have housing options
available for all income levels.
In addition to many communities' needs for affordable workforce housing, their efforts at being
sustainable may inadvertently be counterproductive to their housing goal. A recent study from
the Lincoln Institute of Land Policy shows that "the presence of a state smart growth program
was the strongest predictor of increases in owner cost burden" and that "the housing cost
burden for renters was consistently higher than for owners."
The results of this study "indicate that smart growth programs that lack an affordable housing
element have been associated with increases in housing cost burdens ". "These results, coupled
with differences in program design and implementation among states, suggest that if smart
growth programs are to have a positive impact on housing affordability or avert a negative
impact from constraints on the land market, they must explicitly require the production of
housing for low- and moderate - income households, rather than merely plan for it or ignore it
completely. Simply stated, program design matters."
Recommendation
Fund the newly created IFA Smart Growth Workforce Housing grant program.
3
Southwest Arterial — Proiect Status Update
The Dubuque City Council, the Dubuque County Board of Supervisors, the Dubuque
Metropolitan Area Transportation Study (DMATS), the Dubuque Area Chamber of Commerce
and the Greater Dubuque Development Corporation have all identified the completion of the
Southwest Arterial project as the No. 1 surface transportation priority in the Dubuque area. The
proposed Southwest Arterial project will be a 6.1 -mile four -lane divided freeway with priority 1-
access control between Highway 61/151 and Highway 20.
Economic Development
Dubuque is the regional economic center for the Iowa, Illinois and Wisconsin tri -state area. With
local international companies such as the John Deere Dubuque Works, Nordstrom Distribution
Center, McGraw -Hill Publishing Company, A.Y. McDonald Manufacturing, Flexsteel Industries,
Kendall /Hunt Publishing, and the Hormel Food Corporation, it is critical to construct the
Southwest Arterial as an alternate, direct route for commercial traffic through southwestern
Dubuque. The Southwest Arterial project will significantly improve the efficiency and safety of
the regional highway transportation network that is vital for the statewide, national and global
distribution of local commerce and the continued growth and sustainability of the strong regional
economy.
Mobility Benefits
The Southwest Arterial project will connect two growing sections of the community together and
will support future anticipated expansion growth to the southwest of the City toward the
Dubuque Regional Airport. The Southwest Arterial will also provide an efficient bypass around
the City thereby reducing travel times and minimizing delay by reducing traffic volumes and
congestion on the local street system.
Environmental Benefits
The Southwest Arterial project will provide an alternate, direct and efficient route for traffic
through southwestern Dubuque, which will provide significant travel time savings by avoiding
the numerous signalized intersections on Highway 61/151, Highway 20 and Central Avenue
(Hwy 52/3) through Dubuque, thereby providing fuel energy savings, reducing vehicle emissions
and improving air quality. The Southwest Arterial project will be designed and constructed with
forward thinking sustainability initiative incorporated, which will include an environmentally and
resource sensitive highway corridor, an integrated bike / pedestrian trail with amenities, and
Intelligent Transportation System (ITS) technology.
Current Status
The preliminary engineering design phase is completed and the Southwest Arterial project is
now proceeding with the final engineering design phase, right -of -way property acquisition and
archaeological and cultural resource phase III mitigation work.
Final Engineering Design
In March, 2009, the City approved the selection of AECOM to complete the final engineering
design phase. On August 27th, 2009, the City received official Iowa DOT; notification that the
FHWA has given approval for AECOM to proceed with the final design phase.
The technical design team is currently working on final engineering design elements, including:
interchange layout and configuration, bridge and structures design, geotechnical subsurface
4
investigation, sustainable highway design concepts, architectural and landscape enhancement
concepts, wetland delineations and mitigation.
As part of the final design phase of the Southwest Arterial, the Iowa DOT and the FHWA
required that a formal Value Engineering (VE) Study be conducted. The primary objective of the
Study was to identify potential modifications that might decrease the construction cost or to
increase the value of the project. In November, 2009, the Value Engineering Study was
completed and a final report was issued.
The most significant value engineering (VE) alternative under strong consideration is the
proposed modifications to the Southwest Arterial / U.S. 20 / Seippel Road interchange area.
These changes could include,; use of roundabouts, changes to the ramp layouts, changes to the
access road layouts, eliminate the need for a cross -over bridge, and possibly eliminate the need
to purchase three (3) properties along Cousins Road. The potential VE savings to incorporate
these savings are in the magnitude of $5.9 million.
The full extent of the potential VE savings will be evaluated and further refined as the project
team proceeds into the final design phases, evaluates environmental impacts, property
acquisition impacts and the City conducts public informational meetings on the proposed
Southwest Arterial / U.S. 20 / Seippel Road interchange configurations under consideration.
Property Acquisition
In February, 2009, the City signed a joint partnership agreement between the City and the Iowa
DOT to perform right -of -way property acquisition services for the Southwest Arterial Project. On
September 10, 2009, the City received official Iowa DOT notification that the FHWA has given
approval and authorization to proceed with right -of -way acquisition.
The City and the Iowa DOT property acquisition staff are currently proceeding with right -of -way
property acquisition for the 43 impacted properties. As of October 2011, the City has purchased
27 properties for a total purchase expenditure in the amount of $4.7million to date. Another 2
properties are currently in the acquisition negotiation phase. . Another 5 properties are
anticipated to be released for acquisition within the next 60 days as soon as the utility
easements are finalized and the acquisition appraisal updates are completed. The remaining
10 properties are temporarily on hold while the project team completes the design modifications
to the Southwest Arterial / U.S. 20 / Seippel Road interchange.
As part of the American Recovery and Reinvestment Act (ARRA), the City and County have
committed all of the local transportation funding, $2.9 million, for the purchase of property for the
Southwest Arterial. As of March 2011, all ARRA stimulus funding has been expended.
Archaeological and Cultural Resource Mitigation
In the summer of 2010, work began on the archaeological and cultural resource mitigation
phase of the project. The City anticipates that 75% of the mitigation sites will be completed by
December 2010. The remaining mitigation sites will be completed as those respective properties
are acquired and prior to the start of construction.
5
Construction
To maximize available funding, the City is moving forward with "fast track" phased project
components to construct Southwest Arterial improvements that will provide immediate public
benefits and create significant construction efficiencies for the future grading and paving of the
four -lane freeway between Highway 151/61 to Highway 20.
The first phase of construction began in September , 2010 with the reconstruction of North
Cascade Road. The project will provide for the reconstruction (grading, paving & bridge) and
realignment of North Cascade Road which will allow the Southwest Arterial to travel under the
new North Cascade Road Bridge. The second construction phase, the English Mill Road
reconstruction project, is scheduled for bid letting in spring of 2012 and will involve side road
improvements that will allow the highway to travel under the new English Mill Road Bridge. The
third construction phase, the Military Road reconstruction project is scheduled for bid letting in
spring of 2012 and will involve side road improvements that allow the highway to travel under
the new English Mill Road Bridge.
Construction; Project
Amount
North Cascade Road (1st Phase) - Under Construction
$ 3,000,064
English Mill Road (2 "d Phase) - Bid Sept. 2011
$ 5,093,000
Military Road (3rd Phase) - Bid Sept. 2011
$ 9,13,0000
Total Construction Costs:
$ 17,223,064
In the summer of 2012, the City intends to proceed with a phased approach to begin
construction of the Southwest Arterial / U.S. 20 / Seippel Road interchange. With any remaining
local federal appropriations matched with the Iowa DOT's 5 -Year Highway Transportation
Improvement Program funding (FY13 - $5,460,000), the City will begin grading work for the
interchange development. The Iowa DOT has additional funds programmed in FY14
($12,300,000) to complete the SW Arterial / U.S. 20 / Seippel Road interchange.
Project Cost
Based on current funding levels, an alternate interim phase under consideration would provide
for the grading of four -lanes between Highway 151/61 to Highway 20, pave two -lane highway
between Highway 151/61 to Highway 20, with interchanges at Highway 151/61 and at Highway
20. The preliminary cost projection for the interim two -lane highway is $98.3 million. The current
available funding for the Southwest Arterial is $66.4 million, and is summarized as follows:
Total Funding Projection Summary
Status
Amount
Total Federal Funds
Committed
$ 32,805,334
Total State Funds
Committed
$ 17,760,000
Total Local Funds
Committed
$ 15,808,967
Total Federal / State / Local Funding:
$ 66,374,301
6
At current funding levels, there is a $32 million funding shortfall for the Southwest Arterial to
complete the interim 2 -lane highway between Highway 20 and Highway 61/151. The preliminary
cost projection for the complete four -lane freeway project is $125,000,000. The Southwest
Arterial project remains the No. 1 surface transportation priority in the Dubuque area and other
funding strategies are being evaluated to ensure that this project continues to moves forward.
Requested Action:
The City requests any additional financial assistance that can be provided on the federal level,
as well as any assistance that can be provided to encourage the Iowa Department of
Transportation Commission to maintain support and funding for the Southwest Arterial project in
their Five -Year Transportation Improvement Program.
The City also requests the support of additional appropriations to reduce the current funding
gap ($32 million) to complete the two -lane highway between Hwy 20 and Hwy 61/151 highway
and help provide the match to allow the expenditure of federal funds.
The City requests any additional financial assistance that can be provided on the federal level,
as well as supporting of transferring the remaining unused Federal appropriated SAFETEA -LU
funds ($20 million) from the U.S. Highway 20 / Julien Dubuque Bridge project to the Southwest
Arterial.
The City requests that at some point the State of Iowa redesignate the Southwest Arterial as an
extension of Highway 32 (Northwest Arterial) making it a State route.
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.
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: 1) changes to assessment and valuation
procedure, 2) changes to city and county budgeting processes, 3) developing an alternative to
current property tax limitations, and 4) elimination of the rollback formula and homestead
exemption.
Requested Action:
Work with the Iowa League of Cities, the Metropolitan Coalition 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.
7
Homestead Tax Credit
Each year the City of Dubuque tries to minimize the tax asking for the average homeowner by
not increasing, and in some years, decreasing the City's property tax rate. The State of Iowa
has created a partially unfunded mandate through the establishment of the Homestead Tax
Credit. The cost for the lack of full funding of this credit is passed on to taxpayers and
diminishes the City of Dubuque's efforts to keep property tax rates low. The credit was funded
by the State at 85% in 2003 -2004, 81 % in 2004 -2005, 78% in 2005 -2006 and 2007 -2008, and
73% in 2007 -2008.
Homestead Credit - State should fund 100% of these credits.
MFPRSI - State should fund more of their obligated percentage for their share (3.79 %)
MFPRSI Employee contribution - change legislation to lift the cap from 9.4% (City contribution
will rise to 30% in 3 years, employees should help with this cost)
Requested Action:
Reinstate full funding for the Homestead Tax Credit.
Tax Increment Financing (TIF)
The Iowa Code provides that cities can use TIF for certain public and private economic
development purposes once an urban renewal plan is approved and an urban renewal district
established. The ability to use TIF to assist private economic development projects in urban
renewal districts has become a very useful financing and incentive for private investment.
Requested Action:
Support efforts to maintain Tax Increment Financing as an economic development financing
tool.
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 that require significant funding
commitments for completing the projects in a reasonable amount of time. An example is the
SW Arterial /Hwy 32.
Requested Action:
Support efforts to continue the strategy for funding major transportation projects throughout the
state, including projects that have federal earmarks.
Passenger Rail:
Through the Envision 2010 process, the Citizens of Dubuque have established a Passenger
Rail Committee to support and promote the return of passenger rail service from Chicago to
Dubuque.
There is a Memorandum of Understanding with Illinois to implement passenger rail service
between the States of Iowa and Illinois.
8
Iowa Code Section 327J establishes the Passenger Rail Service Revolving Fund. Monies
deposited into the fund shall be used to pay the costs associated with the initiation, operation
and maintenance of passenger rail service. In FY 2010, $3 million was appropriated to the fund
through I -JOBS legislation.
Requested Action
Support funding and required operating subsidy to return passenger rail from Chicago to
Dubuque.
Border Communities Incentive Program In the 2006 Iowa legislative session, House File
2731 was approved to create the Targeted Jobs Withholding Tax Credit Program. The
Department of Economic Development oversees this program.
The Targeted Jobs Withholding Tax Credit Program is a program for cities located adjacent to
neighboring states to remain competitive in attracting new jobs. Receiving project city status for
this program will make incentives available in the amount of up to three percent of the wages
paid by the company on new eligible jobs. The program will only be available to four cities
which have been chosen as pilot project cities.
This program should be expanded to more communities that fit the qualifying characteristics.
This program would keep Iowa's communities that border other states more competitive when
attracting new business to the state.
Requested Action:
Support efforts to expand this program to allow more communities that fit the qualifying
characteristics to be eligible to receive the incentive. This program would help to keep Iowa's
communities that border other states more competitive when attracting new business to the state.
Economic Development
The role of city government in economic development is crucial. Economic activity requires
roads, streets, airports, water and sanitation. New jobs necessitate more and better housing.
Growing businesses seek quality of life amenities for employees and families, such as parks,
recreation and libraries. Protection and safety of property and life must be assured. This can
only be accomplished with the strong support of an effective city government.
Successful quality of life programs need continued funding, such as Vision Iowa, REAP, CAT
funds, RECAT Iowa Great Places, the Iowa Main Street program funds, and tax credits for
historic preservation.
Requested Action:
Protect and enhance economic development tools enabling cities in Iowa to promote economic
improvement throughout the state.
Eminent Domain
During 2006, the Legislature approved changes to the Eminent Domain Law. Included in the
changes, and of particular concern, is the requirement that seventy -five percent or more of the
9
area included in the urban renewal plan must consist of property in a slum or blighted condition
at the time the plan was established in order for the entire project or acquisition plan area to be
subject to condemnation by the municipality. We believe that a 51% threshold is more
reasonable. Furthermore, the new language provides that the project or acquisition plan area
shall only include the adjacent and contiguous parcels necessary for the completion of planned
activities for a specific business or housing project. This language would be limiting for
downtown development projects that may be larger in scope than just the parcels that meet the
definition of slum and blight. Lastly, the burden for the use of eminent domain for airport project
is increased by the requirement that the Board of Supervisors must hold a public hearing and
pass a resolution unless the airport improvement is FAA- required. This creates additional
layers of burden on a municipality.
Requested Action:
Support efforts to amend sections of the Eminent Domain Law to allow for changes as proposed
by the Iowa League of Cities and noted above.
Fully Funding Enrich Iowa Program
Enrich Iowa is a state aid program for Iowa's libraries. Until recently, Iowa was one of eight
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 increase funding for the Enrich Iowa program.
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
$5,000 to $6,000; 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 employees
purchasing or renting housing in the enterprise zone could access funds for their housing
needs.
10
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.
Hotel and Food Establishment. License Fees
In the 2006 legislative session, House Study Bill (HSB) 648 was introduced. This bill proposed
increasing the hotel and food establishment license fees, bringing them in line with costs of
running the program. The bill passed in 2007 increased the various food license fees by a
range of 20 - 30 %. This increase will still not pay for the cost of doing risk -based inspections, as
required by Iowa Code.
Requested Action:
Support legislation that will fully fund State mandated health inspections for Hotel and Food
Establishments through increased license fees.
School Food Program Inspections
An amendment to Section 9(h) of the Richard B. Russell National School Lunch Act (42 U.S.C.
1768(f)(5)) went into effect July 2005. This amendment imposes an unfunded mandate
requiring at least two school food program inspections per year instead of one.
Now, the City of Dubuque Health Services Department will have to inspect school food lunch
programs (which actually cook food on -site vs. just serving food prepared at another site) two
times per year, but will not receive any license or inspection fees for the service. The City does
not believe it is necessary to inspect the school food lunch programs more than once per year
based on past inspections. This unfunded mandate will add twelve inspections for a total of 5.0
annual uncompensated inspections for school lunch programs.
Requested Action_
Oppose legislation for a second School Food Program inspection, and /or create a funding
mechanism to cover the costs of school lunch program inspections.
In addition, both the Health Services Department and the Housing and Community
Development Department would like Iowa Code Section 364.12 (h) changed. Currently, a notice
of violation must be sent via certified mail to a property owner if the City performs the required
mitigation of the problem and assesses the cost to the property owner. We suggest that a
notice be sent via regular mail to the property owner. Oftentimes, it is difficult for people to
collect or pickup certified mail, particularly if they are not home at time of delivery. Certified also
adds a significant cost ($2.87) to the mail of each notice.
11
411 Contributions
The City of Dubuque's contribution to the retirement system for police officers and firefighters
went from 19.9% of wages in Fiscal Year 2011 to 24.76% of wages in Fiscal Year 2012.
Requested Action:
The State of Iowa shall contribute to the MFPRSI. Current law provides for employees to
contribute no more than 9.4% and cities no less than 17 %. In recent years cities have been
forced to increase their payment to the retirement system to 28.21% in 2006, 24.76% in 2012,
26.12% in 2013 and a projection of 30.12% in 2015.
These pension contributions by the 49 cities participating in the MFPRSI are a large cost driver
in city budgets and have forced and will force cities to raise property taxes to generate revenue
to pay for these burdensome expenses.
To provide relief to the 49 cities participating in the MFPRSI the State will contribute to the
system the remaining difference after the member pays their statutorily required 9.4% and the
cities pay their statutorily required 17% into the system.
411 Subrogation
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.
Seasonal Employees
Currently, temporary employees that accept a job that starts on a specific date and ends on a
specific date are eligible to collect unemployment. For example, temporary employees hired for
three or four months to mow lawns during the summer are allowed at the end of the summer to
collect unemployment even though they know the job is temporary when hired. This puts a
costly burden on the employer.
Requested Action:
Amend the unemployment law so that temporary employees are not allowed to collect
unemployment.
Underage and Binge Drinking
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
12
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.
Eliminate "Good Moral Character" language from Iowa Code
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 municipality's interpretation of "Person of Good Moral Character" prior to
issuing a liquor license.
Requested Action:
Urge legislators to eliminate "good moral character" language and replace it with objective
standards.
Airport Infrastructure Funding
At a minimum, increase funding for the highly successful Commercial Service Vertical
Infrastructure program to at least $1.75M (current appropriation of $1.5M) for facility
improvement projects at public- owned, public -use airports in Iowa.
Requested Action:
Increase funding for the Commercial Service Vertical Infrastructure program to at least $1.75M.
Air Service Retention
Iowa's economy depends on regular, dependable and affordable commercial air service.
Keeping service is essential to the economic recovery of all corners of the state. Recommend
the establishment of Air Service Retention Committee made up of a representative from the
Department of Transportation's Office of Aviation, a representative from each of the state's
commercial service airports, two representatives from commercial airlines serving the state and
a member of the majority and minority parties in the House and Senate. The Committee shall
develop a plan for the retention of current passenger airline services. .
Requested Action:
Establishment of an Air Service Retention Committee..
Aviation Tax Policy
Iowa airports and aviation industry have requested sales and use tax policy changes to remain
competitive with our neighboring states. The repeal or capping of any aviation sales and use
tax exemption would severely cripple the state's airports and aviation industry.
Requested Action:
Maintain the aviation sales and use tax exemption.
Effective Control of Wildlife Aviation Hazards
13
Deer and other animals continue to be hazards to aviation in our state. Pilots and
airport managers report an alarming increase in the number of runway incursions
by wild animals. Public airports should be allowed to engage in timely and
appropriate depredation efforts for their facilities.
Requested Action:
Allow airports the use of rifles to eliminate wildlife hazards.
Rebuild Iowa
Provide for continuation of Rebuild Iowa Infrastructure Fund appropriations for vertical
infrastructure projects at both commercial and general aviation airports.
Expand Cities' Extraterritorial Jurisdiction
Cities have extraterritorial jurisdiction (ETJ) 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' ETJ 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
ETJ of cities to include review and approval of zoning changes.
Requested Action_
Support legislation enabling cooperative planning and effective land management practices.
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.
Requested Action:
Enact legislation allowing property owners to represent a majority of the 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
14
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.
Ambient Air Quality Rules
In July 2004 the Environmental Protection Commission set H2S limits 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 affect
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.
Increase REAP Funding in the Environment First Fund
REAP stands for Resource Enhancement and Protection. It is a program in the State of Iowa
that invests in, as its name implies, the enhancement and protection of the state's natural and
cultural resources.
The following four state agencies administer REAP programs:
Department of Natural Resources
Department of Agriculture and Land Stewardship, Division of Soil Conservation
Department of Cultural Affairs, State Historical Society
Department of Transportation
REAP funds go into eight different programs based on percentages that are specified in state
law. REAP Fund Allocation: First $350,000 each year goes to Conservation Education and 1%
of balance goes for DNR Administration. The remaining balance is then divided as follows:
1) DNR Open Space 28%
2) City Parks and Open Space 15%
3) Soil and Water Enhancement 20%
4) County Conservation 20%
5) DNR Land Management 9%
6) Historical Resources 5%
7) Roadside Vegetation 3%
REAP is funded from the state's Environment First Fund (Iowa gaming receipts) and from the
sale of the natural resource license plate. The state legislature sets the amount of REAP
funding every year, and in the recent past that level has been 12 million I . Interest from the
REAP account and receipts from the sale of natural resource license plates add about $450,000
to this appropriation for a total of $12.45 million a year.
In the last two years, REAP has been appropriated $15 million and $12million, compared to
the 22 year average of $11.4 million.
Requested Action:
15
Request that the Iowa Legislature work to increase REAP to full funding of $20 million,
Assessor's Bill
Property tax experts or representatives are now part of the tax appeal process. A tax
representative can file an appeal for a large commercial property under a contingency basis,
receiving their pay based on a percentage of the property tax savings they can achieve for their
client. In many of these cases little or no money is expended by the taxpayer. The
representative files a protest with the Board of Review and supplies little or no information to the
Board. The Board may deny the protest but the tax representative will file a protest to either
District Court or the Property Assessment Appeal Board. At this point the tax representative
may produce more information or they may try to negotiate a settlement. On the assessor's
side it may be very costly to hire appraisals and fight this out in Court. A single appraisal for a
large Commercial or Industrial property will easily exceed $5000.
Also, many appeals to the Board of Review are filed at the last minute with a statement such as
information to be presented at hearing. Many appellants never provide the information or
provide it very late in the Board of Review session so the Board is unable to reach a well
founded conclusion.
Requested Action:
Request the Iowa Legislature to limit appeals to District Court and the Property Assessment
Appeal Board to matters and information that were presented before the local Board of Review.
Ask the Iowa Legislature to review appeal dates and Board of Review sessions to allow
sufficient time for appellants to present all their information.
CAP Act of 2009 (H.R. 3745). The CAP (Community Access Preservation) Act of 2009
introduced by Wisconsin Rep Tammy Baldwin recognizes the important role that Public,
Educational, and Governmental (PEG) access channels play in local communities and
addresses some of the concerns facing these channels.
Legislation that establishes national standards for interoperable public safety standards
for first responders.
Legislation that preserves and extends municipal government authority to provide
communications services to their constituents.
Legislation that overturns the FCC cable franchise order and returns to the local
franchising scheme set out in the 1984 Cable Act.
Land Banking
In order to return blighted and abandoned properties to productive use quickly, states
have passed legislation that streamlines the tax foreclosure process by giving
ownership of these tax - reverted properties to the county treasurer sooner and allowing
city, county or state land banks to purchase these properties earlier in the tax
foreclosure auction process. Further legislative reform in these states has redirected
money collected from unpaid and delinquent property taxes toward land banks for
purposes of funding the land banks and for the purchase of tax - reverted properties.
The City of Dubuque will explore the formation of a land bank that would purchase tax -
reverted properties through the tax foreclosure process. The land bank would maintain
16
these properties until purchase by a responsible buyer, ensuring the properties' return
to productive use.
Requested Action:
Support the formation of a City of Dubuque Land Bank and work with the Iowa League
of Cities, the Metropolitan Coalition and ISAC to approve legislation redirecting money
collected from unpaid and delinquent property taxes toward the City of Dubuque Land
Bank for funding and for the purchase of tax - reverted properties.
Arts and Culture
Background
Arts and culture is a strong component of tourism, economic development and quality of life for
all Iowans. Great livable communities in Iowa must support culture, arts, history, and focused
community development. Investment in cultural programs improves the quality of life in Iowa
and helps to attract and retain a vibrant workforce which assists in developing and promoting
Iowa's economic vitality.
Iowa ranks 42 "d of all states in per capita spending of $0.34 for arts and culture. The national
average is $.90. States with similar populations out rank Iowa. Utah spends $1.01 (14th)
Arkansas spends $.74 (25th), and Mississippi spends $.65 (27th)
In 2004, the Dubuque City Council approved an Arts and Cultural Affairs Advisory Committee,
$35,000 in annual project grants and established a Downtown Cultural Corridor. A $200,000
annual operating and special project support funding was established in 2005 and $300,000 in
capital funds was allocated for the Art on the River public art program for ten years. Dubuque
created a part time staff position of Arts and Cultural Affairs Coordinator in FY2009 with partial
funding from Iowa Community Cultural Grants in FY 2009, 2010 And 2011. However, with the
reduced ICCG funds available, funding was not received for FY 2012. The coordinator works
closely with the Commission to promote and increase awareness and market the arts and
activities and allocate budgeted funding for the arts and cultural activities. The position has
enabled the Commission to develop goals and priorities, to enhance the public art program by
creating standards of excellence using regional, state and national models and refining the grant
process to ensure the taxpayer's money is used in the best possible manner. Although much
has been accomplished, many opportunities remain to strengthen and expand Dubuque's
cultural vitality. The recent designation of the Historic Millwork District plan brings integrated
strategies that include design guidelines, historic preservation, community gardens, central
gathering spaces, arts venues and artistic streetscapes. The City markets itself as a major
tourist destination featuring world class museums, cultural opportunities, and historic
architecture. Over $1.7 million visitors come to Dubuque each year, many of them Iowans who
are vacationing closer to home. The Dubuque Chamber of Commerce estimates that at least
two thirds of the 98,000 people in Dubuque County visit the Port of Dubuque, where the City's
temporary art exhibit is held, one or more times in the course of a year.
The City of Dubuque has provided more than $1. 8 million dollars in funding for the arts since
the establishment of the City's Arts and Cultural Affairs Advisory Commission in 2004. The
Commission has managed the City's investment, allocated among three programs: $1.4 million
has been awarded through the Operating Support Grant Program; $275,000 has been awarded
through the Special Projects Grant Program that has leveraged a total of $588,550 in arts
17
projects in our community, and; $120,000 has funded the Art on the River annual temporary
public art exhibit at the Port of Dubuque.
Not only is the City of Dubuque reliant upon Department of Cultural Affairs funding for the arts,
most of the art and cultural organizations and schools in Dubuque regularly receive funding from
the various grant programs offered through the Department of Cultural Affairs,
The latest information from 2006 shows an economic impact of arts and cultural organizations in
Dubuque of $22 million. A new economic impact study from Americans for the Arts is being
conducted in 2011.
Requested Action:
Support programs in the Department of Cultural Affairs (Iowa Arts Council, State Historical
Society of Iowa) to continue to recognize and promote Iowa's cultural heritage as key in
recovery and strengthening of all Iowa communities. State funding of these programs leverages
local support for arts and cultural organizations, historical organizations, educational programs,
rehabilitation of historic buildings, and projects involving a variety of historic resources. These
cultural activities also employ accountants, designers, contractors, union workers, etc. Specific
programs to support include:
• Provide specific funding for the Cultural Leadership Partners program at $250,000 and for the
"Major and Mini Grants" program at $500,000 to ensure continuation of these programs without
dependence on budget appropriations for the Iowa Arts Council.
• Support funding for Iowa Community Cultural Grants at $300,000.
• Match the federal funding of $40,000 for Big Yellow School Bus Grants with $80,000 by the
state to double the required state level funding and expand program language to include all
historical and cultural destinations.
• Maintain funding for the Historic Site Preservation Grants in the Department of Cultural Affairs
at $1 million.
• Provide appropriate staff support within the Department of Cultural Affairs to provide previous
levels of services to communities and citizens of Iowa through all programs and departments.
Energy Efficiency & Renewable /Alternative Energy:
Recently, the American Council for an Energy- Efficient Economy ranked Iowa 12th in the nation
for its efforts to promote energy efficiency. Iowa scored highly in the category of building energy
codes as one of only 17 states with a statewide code that meets or exceeds the latest
International Energy Conservation Code standards for both residential and commercial
buildings. Businesses, residents and local governments have taken advantage of existing
incentive programs, but still have much work to do in order to make their new and existing
buildings more energy efficient. As energy efficiency is achieved, private and public
organizations as well as individuals have begun to explore a variety of alternative and
renewable energy options to increase their energy independence, reduce dependence on coal
and oil, reduce greenhouse gas emissions, improve the competitiveness of local business and
improve public health.
The City of. Dubuque and local non - profits and businesses have established a strong focus on
significantly improving energy efficiency in municipal, commercial and residential buildings. The
18
City is also committed to growing the percentage of energy which comes from local renewable
or alternative energy sources. .
Requested Action:
With the discontinuation of the Office of Energy Independence and its programs, it will be
critical for all state agencies (including, but not limited to, the Department of Economic
Development, Iowa Utility Board, Department of Natural Resources and Department of
Administrative Services) to develop programming, funding and regulatory flexibility to support
and promote the development of additional energy efficiency efforts and the adoption of
renewable and alternative energy sources at the local level. Successful energy efficiency
incentive programs should be continued and Iowa should explore opportunities to remain
competitive with other states in offering incentives for the installation and utilization of renewable
and alternative energy. Specifically, the state should consider a progressive energy policy that
works with local governments and utilities to remove barriers to widespread renewable energy
use. In addition, we recommend the State review its existing legislative and regulatory
approaches and consider modifications that will facilitate the role of local government in creating
the environment and support for local energy efficiency and renewable energy efforts.
Food Residual Composting
Iowa Administrative Code 567 — Chapter 105 regulates the composting of various materials,
including yard waste, agricultural byproducts, garbage, dead animals, and food residuals. At
the present time, the noted regulations require costly infrastructure improvements before a
permit is granted by the Iowa Department of Natural Resources to allow the composting of food
residuals from homes, grocery stores, restaurants, and cafeterias. As a result, all but three (3)
of Iowa's forty -five (45) landfills continue to bury their service area's food residuals instead of
composting them.
Requested Action:
The City of Dubuque currently maintains a list of residences as well as large -scale
facilities, including grocery stores and hospitals, that are waiting to participate in a food
residual composting program. The State should work with local landfills to define
compromises that continue to protect Iowa's soils and waters while allowing local
governments to significantly expand their food residual composting programs.
Amend Iowa Administrative Code 567 — Chapter 105 to encourage Iowa's other forty -two (42)
landfills to compost, rather than landfill, food scrap residuals.
Healthy Local Foods
During the 2010 Legislative Session, the Legislature charged the Leopold Center for
Sustainable Agriculture with preparing a local food and farm plan containing policy and funding
recommendations for supporting and expanding local food systems and for assessing and
overcoming obstacles necessary to increase locally grown food production. The Healthy Local
Foods principle of Dubuque's sustainability model aims to provide benefits of wholesome food
from local producers, distributors, farms, gardens and hunters to all. The City and its partners
engaged in the Healthy Local Foods initiative have participated in the forming of the Local Food
& Farm Plan. In order for local institutions and consumers to increase their purchase and
consumption of local foods, barriers must be overcome that enable more produce and meat to
be produced, processed and sold locally. Various studies have shown the value of a strong
local food system as an economic development tool.
19
Requested Action:
Provide policy direction, funding and other resources to implement the recommendations of the
Local Food & Farm Plan delivered to the Legislature in January 2011.
Community Health Centers
In 2011, Crescent Community Health Center budgeted for 38% of patients seen to be
uninsured, meaning they pay zero on the sliding fee scale. As of October 2011, Crescent is
seeing 62% uninsured patients. Community Health Centers are now seeing IowaCares patients
for primary care, which provides more access than the previous option of traveling only to Des
Moines or Iowa City. Community Health Centers cannot continue to provide services with this
ongoing financial loss. Specialty physicians and other specialty health care providers are willing
to volunteer at Community Health Centers, such as Crescent, but the cost of malpractice
insurance is prohibitive.
Requested Action;
Request more funding be allocated to the IowaCare line item for the participating Federally
Qualified Health Centers (FQHCs) Community Health Centers.
Request a direct supplemental funding award from the State to help offset the costs of the rising
number of uninsured patients being seen by the Community Health Centers (FQHCs) across
the state.
Based on a review of the Volunteer Health Care Provider rules, seek changes to the program
that would allow specialists to volunteer at the Community Health Centers (FQHCs) and provide
services to uninsured and IowaCare members
20
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: City of Dubuque State Legislative Issues for the 2012 Session
DATE: December 1, 2011
Dubuque
kard
All- America City
I
2007
Assistant City Manager Teri Goodmann has worked with City staff to develop a
recommendation on this year's State of Iowa Legislative Priorities. The priorities, as
adopted by the City Council, will be presented to our legislators at the annual Legislative
Dinner on December 7, at 5:30 p.m. at the Grand River Center.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
City Of Dubuque
State Legislative Issues
For The 2012 Session
State Historic Tax Credits
The Iowa Historic Preservation Tax Credit was passed in May 2000 to promote investment in
our historic resources in communities, codified in Section 404A.4. Rehabilitation of these
resources contributes to the economic viability as well as the strength of our communities. The
secondary impacts of this historic tax credit on our communities are countless. The program
provides a tax credit of 25% of the qualified rehabilitation expenses for qualified projects. Thus,
each credit represents an investment in our community of at least four times the amount of the
credit. Additional revenues are generated through increased property taxes, income taxes, and
sales taxes.
The cap for the program is currently set at $50 million per year.
Dubuque has benefited from 20 state historic tax credit projects, more than any other city in the
State of Iowa, which has added far more to our financial system than a simple single storefront
project as listed above. A sample of the impact is as follows:
Project New Jobs
Security Building 90
Town Clock Building 60
Heartland Building 45
Platinum Building 110
Star Brewery 170
Cooper Wagon Works /Bricktown 65
German Bank 25
Roshek Building 1,300
Hotel Julien 57
Caradco 75 (estimate)
Total 1,997 new permanent jobs
These projects have added well over 1,997 permanent jobs to our economy, not including the
construction jobs to complete the large projects. These 1,997 people would equate to a $ 85
million annual payroll.
Critical workforce housing needs in the City of Dubuque make state historic tax credits and
other financial incentives a top priority as the City works to promote redevelopment and
reinvestment in our urban core.
Requested Action:
Maintain the state historic tax credit program at the current level with a goal of removing the cap
on the historic preservation tax incentives. Work to ensure that the administrative rules support
private sector development and best practices.
1
Smart Growth Workforce Housing
Creation of the Smart Growth Workforce Housing grant program under the discretionary
policy of the Iowa Finance Authority provides greater opportunity for the City of Dubuque and
its partners to stabilize the community and will prioritize environmentally - sustainable
development and will promote economic development. This grant program was established in
the 2010 legislative session. The program needs funding appropriations to become available
effective FY2012.
Definition
Smart Growth practices are settlement patterns that avert urban sprawl by encouraging more
compact development, greater transit use, and enhanced environmental protection. Workforce
housing is normally defined as housing affordable to households earning between 80 percent
and 120 percent area median income (AMI). Affordable, in the housing industry, means a
household pays no more than 30 percent of its annual income on housing. Smart Growth
Workforce Housing is the combination of these concepts — the development of sustainable,
transit - oriented housing that is affordable for our workforce.
What can our workforce households afford to pay for housing? "The National Housing Act of
1937 created the public housing program... [wherein] a tenant's income could not exceed five to
six times the rent; and by 1940 income limits gave way to the maximum rent standard in which
rent could not exceed 20 percent of income — in practice, the same as the predecessor income
limit standard. Over the decades, that percentage has risen, so that by 1981 the threshold was
set at 30 percent of income. Households that spend over 30 percent of income on housing are
considered cost burdened. Why the increase? Was it truly deemed a more appropriate
benchmark? Or was it simply in response to an increase in housing costs and the
government's inability to subsidize housing for an ever - growing number of struggling
households?
Using the current industry standard of spending up to 30 percent of gross income for gross
housing costs (including tax, insurance, & utilities), workforce households could be expected to
spend the maximum amounts indicated in the table below. Housing markets differ greatly, but
we know that rents run much higher than these net rent levels in many areas; and conversely,
these rents are simply unattainable in other areas like Dubuque due to lower local prevailing
wages. The mortgage levels listed below would service a 30 -year mortgage valued between
$83,000 and $125,000, whereas the current median sale price for homes in Dubuque is
$121,800 — barely within reach for the upper end of our workforce.
Workforce
Households
(Dubuque)
Dubuque
Gross
Annual
Income
Gross
Monthly
Affordable
Net Affordable
Net Affordable
Rent
Mortgage Pmt.
(w /o utilities)
(w /o utilities,
tax &
insurance)
Housing
Cost
80% AMI
$35,700
$881
$661
$581
120% AMI
$53,520
$1,321
$991
$872
2
Over the past decade, rising housing costs have outpaced the average salary across the United
States — in some areas by two- to five -fold. Many workers in urban areas have dealt with this
discrepancy by living far from their downtown jobs or by living in housing they can't afford.
Unfortunately, the former solution is offset by an increase in transportation costs. And what is
the price we pay for the latter solution? "Families who pay more than 30 percent of their income
for housing are considered cost burdened and may have difficulty affording necessities such as
food, clothing, transportation and medical care." In fact, a full 37% of homeowners and 50%
of renters today are cost burdened.
Fortunately, housing costs in smaller urban and rural areas are often within closer reach for
workforce households. However, in areas where vacancy rates are low— calling for the
production of new units — development of quality housing is financially impossible, as
operational income on the properties is not enough to cover interest payments on the project
mortgage. Low local rent levels, although beneficial for tenants, preclude developers
from creating new units, despite a community's housing shortage. For this reason, many
developers have turned to the LIHTC program to make their projects financially feasible,
whether or not this fulfills the community's particular housing demand.
Meanwhile, the recent economic downturn and housing market woes have combined to create a
new class of workers, forced into the rental market because they do not qualify for a mortgage.
Displaced workers with homes that won't sell, families who've had their homes foreclosed,
young professionals with student loans, and households that might otherwise be able to afford
mortgage payments if only they could come up with the higher requisite down payment
demanded in a tight lending climate — all of these are moving into the rental market. This
creates a rather sudden increase in the demand for rental residential units for households that
are neither wealthy, nor are they eligible for low- income housing.
The creation of affordable housing options for our workforce allows communities to attract and
retain quality employers. If the only housing that developers can afford to produce is intended
for low- income or wealthy households, we should not be surprised to see such a disparity in our
communities' income levels. To have a healthy mix of incomes, we must have housing options
available for all income levels.
In addition to many communities' needs for affordable workforce housing, their efforts at being
sustainable may inadvertently be counterproductive to their housing goal. A recent study from
the Lincoln Institute of Land Policy shows that "the presence of a state smart growth program
was the strongest predictor of increases in owner cost burden" and that "the housing cost
burden for renters was consistently higher than for owners."
The results of this study "indicate that smart growth programs that lack an affordable housing
element have been associated with increases in housing cost burdens ". "These results, coupled
with differences in program design and implementation among states, suggest that if smart
growth programs are to have a positive impact on housing affordability or avert a negative
impact from constraints on the land market, they must explicitly require the production of
housing for low- and moderate - income households, rather than merely plan for it or ignore it
completely. Simply stated, program design matters."
Recommendation
Fund the newly created IFA Smart Growth Workforce Housing grant program.
3
Southwest Arterial - Project Status Update
The Dubuque City Council, the Dubuque County Board of Supervisors, the Dubuque
Metropolitan Area Transportation Study (DMATS), the Dubuque Area Chamber of Commerce
and the Greater Dubuque Development Corporation have all identified the completion of the
Southwest Arterial project as the No. 1 surface transportation priority in the Dubuque area. The
proposed Southwest Arterial project will be a 6.1 -mile four -lane divided freeway with priority 1-
access control between Highway 61/151 and Highway 20.
Economic Development
Dubuque is the regional economic center for the Iowa, Illinois and Wisconsin tri -state area. With
local international companies such as the John Deere Dubuque Works, Nordstrom Distribution
Center, McGraw -Hill Publishing Company, A.Y. McDonald Manufacturing, Flexsteel Industries,
Kendall /Hunt Publishing, and the Hormel Food Corporation, it is critical to construct the
Southwest Arterial as an alternate, direct route for commercial traffic through southwestern
Dubuque. The Southwest Arterial project will significantly improve the efficiency and safety of
the regional highway transportation network that is vital for the statewide, national and global
distribution of local commerce and the continued growth and sustainability of the strong regional
economy.
Mobility Benefits
The Southwest Arterial project will connect two growing sections of the community together and
will support future anticipated expansion growth to the southwest of the City toward the
Dubuque Regional Airport. The Southwest Arterial will also provide an efficient bypass around
the City thereby reducing travel times and minimizing delay by reducing traffic volumes and
congestion on the local street system.
Environmental Benefits
The Southwest Arterial project will provide an alternate, direct and efficient route for traffic
through southwestern Dubuque, which will provide significant travel time savings by avoiding
the numerous signalized intersections on Highway 61/151, Highway 20 and Central Avenue
(Hwy 52/3) through Dubuque, thereby providing fuel energy savings, reducing vehicle emissions
and improving air quality. The Southwest Arterial project will be designed and constructed with
forward thinking sustainability initiative incorporated, which will include an environmentally and
resource sensitive highway corridor, an integrated bike / pedestrian trail with amenities, and
Intelligent Transportation System (ITS) technology.
Current Status
The preliminary engineering design phase is completed and the Southwest Arterial project is
now proceeding with the final engineering design phase, right -of -way property acquisition and
archaeological and cultural resource phase III mitigation work.
Final Engineering Design
In March, 2009, the City approved the selection of AECOM to complete the final engineering
design phase. On August 27th, 2009, the City received official Iowa DOT notification that the
FHWA has given approval for AECOM to proceed with the final design phase.
The technical design team is currently working on final engineering design elements, including:
interchange layout and configuration, bridge and structures design, geotechnical subsurface
4
investigation, sustainable highway design concepts, architectural and landscape enhancement
concepts, wetland delineations and mitigation.
As part of the final design phase of the Southwest Arterial, the Iowa DOT and the FHWA
required that a formal Value Engineering (VE) Study be conducted. The primary objective of the
Study was to identify potential modifications that might decrease the construction cost or to
increase the value of the project. In November, 2009, the Value Engineering Study was
completed and a final report was issued.
The most significant value engineering (VE) alternative under strong consideration is the
proposed modifications to the Southwest Arterial / U.S. 20 / Seippel Road interchange area.
These changes could include; use of roundabouts, changes to the ramp layouts, changes to the
access road layouts, eliminate the need for a cross -over bridge, and possibly eliminate the need
to purchase three (3) properties along Cousins Road. The potential VE savings to incorporate
these savings are in the magnitude of $5.9 million.
The full extent of the potential VE savings will be evaluated and further refined as the project
team proceeds into the final design phases, evaluates environmental impacts, property
acquisition impacts and the City conducts public informational meetings on the proposed
Southwest Arterial / U.S. 20 / Seippel Road interchange configurations under consideration.
Property Acquisition
In February, 2009, the City signed a joint partnership agreement between the City and the Iowa
DOT to perform right -of -way property acquisition services for the Southwest Arterial Project. On
September 10, 2009, the City received official Iowa DOT notification that the FHWA has given
approval and authorization to proceed with right -of -way acquisition.
The City and the Iowa DOT property acquisition staff are currently proceeding with right -of -way
property acquisition for the 43 impacted properties. As of October 2011, the City has purchased
27 properties for a total purchase expenditure in the amount of $4.7million to date. Another 2
properties are currently in the acquisition negotiation phase. . Another 5 properties are
anticipated to be released for acquisition within the next 60 days as soon as the utility
easements are finalized and the acquisition appraisal updates are completed. The remaining
10 properties are temporarily on hold while the project team completes the design modifications
to the Southwest Arterial / U.S. 20 / Seippel Road interchange.
As part of the American Recovery and Reinvestment Act (ARRA), the City and County have
committed all of the local transportation funding, $2.9 million, for the purchase of property for the
Southwest Arterial. As of March 2011, all ARRA stimulus funding has been expended.
Archaeological and Cultural Resource Mitigation
In the summer of 2010, work began on the archaeological and cultural resource mitigation
phase of the project. The City anticipates that 75% of the mitigation sites will be completed by
December 2010. The remaining mitigation sites will be completed as those respective properties
are acquired and prior to the start of construction.
5
Construction
To maximize available funding, the City is moving forward with "fast track" phased project
components to construct Southwest Arterial improvements that will provide immediate public
benefits and create significant construction efficiencies for the future grading and paving of the
four -lane freeway between Highway 151/61 to Highway 20.
The first phase of construction began in September , 2010 with the reconstruction of North
Cascade Road. The project will provide for the reconstruction (grading, paving & bridge) and
realignment of North Cascade Road which will allow the Southwest Arterial to travel under the
new North Cascade Road Bridge. The second construction phase, the English Mill Road
reconstruction project is scheduled for bid letting in spring of 2012 and will involve side road
improvements that will allow the highway to travel under the new English Mill Road Bridge. The
third construction phase, the Military Road reconstruction project is scheduled for bid letting in
spring of 2012 and will involve side road improvements that allow the highway to travel under
the new English Mill Road Bridge.
Construction Project
Amount
North Cascade Road (1st Phase) - Under Construction
$ 3,000,064
English Mill Road (2 "d Phase) - Bid Sept. 2011
$ 5,093,000
Military Road (3`d Phase) - Bid Sept. 2011
$ 9,1 3,0000
Total Construction Costs:
$ 17,223,064
In the summer of 2012, the City intends to proceed with a phased approach to begin
construction of the Southwest Arterial • U.S. 201 Seippel Road interchange. With any remaining
local federal appropriations matched with the Iowa DOT's 5 -Year Highway Transportation
Improvement Program funding (FY13 - $5,460,000), the City will begin grading work for the
interchange development. The Iowa DOT has additional funds programmed in FY14
($12,300,000) to complete the SW Arterial / U.S. 20 / Seippel Road interchange.
Project Cost
Based on current funding levels, an alternate interim phase under consideration would provide
for the grading of four -lanes between Highway 151/61 to Highway 20, pave two -lane highway
between Highway 151/61 to Highway 20, with interchanges at Highway 151161 and at Highway
20. The preliminary cost projection for the interim two -lane highway is $98.3 million. The current
available funding for the Southwest Arterial is $66.4 million, and is summarized as follows:
Total Funding Projection Summary
Status
Amount
Total Federal Funds
Committed
$ 32,805,334
Total State Funds
Committed
$ 17,760,000
Total Local Funds
Committed
$ 15,808,967
Total Federal • State • Local Funding:
$ 66,374,301
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At current funding levels, there is a $32 million funding shortfall for the Southwest Arterial to
complete the interim 2 -lane highway between Highway 20 and Highway 61/151. The preliminary
cost projection for the complete four -lane freeway project is $125,000,000. The Southwest
Arterial project remains the No. 1 surface transportation priority in the Dubuque area and other
funding strategies are being evaluated to ensure that this project continues to moves forward.
Requested Action:
The City requests any additional financial assistance that can be provided on the federal level,
as well as any assistance that can be provided to encourage the Iowa Department of
Transportation Commission to maintain support and funding for the Southwest Arterial project in
their Five -Year Transportation Improvement Program.
The City also requests the support of additional appropriations to reduce the current funding
gap ($32 million) to complete the two -lane highway between Hwy 20 and Hwy 61/151 highway
and help provide the match to allow the expenditure of federal funds.
The City requests any additional financial assistance that can be provided on the federal level,
as well as supporting of transferring the remaining unused Federal appropriated SAFETEA -LU
funds ($20 million) from the U.S. Highway 20 / Julien Dubuque Bridge project to the Southwest
Arterial.
The City requests that at some point the State of Iowa redesignate the Southwest Arterial as an
extension of Highway 32 (Northwest Arterial) making it a State route.
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.
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: 1) changes to assessment and valuation
procedure, 2) changes to city and county budgeting processes, 3) developing an alternative to
current property tax limitations, and 4) elimination of the rollback formula and homestead
exemption.
Requested Action:
Work with the Iowa League of Cities, the Metropolitan Coalition 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.
7
Homestead Tax Credit
Each year the City of Dubuque tries to minimize the tax asking for the average homeowner by
not increasing, and in some years, decreasing the City's property tax rate. The State of Iowa
has created a partially unfunded mandate through the establishment of the Homestead Tax
Credit. The cost for the lack of full funding of this credit is passed on to taxpayers and
diminishes the City of Dubuque's efforts to keep property tax rates low. The credit was funded
by the State at 85% in 2003 -2004, 81 % in 2004 -2005, 78% in 2005 -2006 and 2007 -2008, and
73% in 2007 -2008.
Homestead Credit - State should fund 100% of these credits.
MFPRSI - State should fund more of their obligated percentage for their share (3.79 %)
MFPRSI Employee contribution - change legislation to lift the cap from 9.4% (City contribution
will rise to 30% in 3 years, employees should help with this cost)
Requested Action:
Reinstate full funding for the Homestead Tax Credit.
Tax Increment Financing (TIF)
The Iowa Code provides that cities can use TIF for certain public and private economic
development purposes once an urban renewal plan is approved and an urban renewal district
established. The ability to use TIF to assist private economic development projects in urban
renewal districts has become a very useful financing and incentive for private investment.
Requested Action:
Support efforts to maintain Tax Increment Financing as an economic development financing
tool.
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 that require significant funding
commitments for completing the projects in a reasonable amount of time. An example is the
SW Arterial /Hwy 32.
Requested Action:
Support efforts to continue the strategy for funding major transportation projects throughout the
state, including projects that have federal earmarks.
Passenger Rail:
Through the Envision 2010 process, the Citizens of Dubuque have established a Passenger
Rail Committee to support and promote the return of passenger rail service from Chicago to
Dubuque.
There is a Memorandum of Understanding with Illinois to implement passenger rail service
between the States of Iowa and Illinois.
8
Iowa Code Section 327J establishes the Passenger Rail Service Revolving Fund. Monies
deposited into the fund shall be used to pay the costs associated with the initiation, operation
and maintenance of passenger rail service. In FY 2010, $3 million was appropriated to the fund
through I -JOBS legislation.
Requested Action
Support funding and required operating subsidy to return passenger rail from Chicago to
Dubuque.
Border Communities Incentive Program In the 2006 Iowa legislative session. House File
2731 was approved to create the Targeted Jobs Withholding Tax Credit Program. The
Department of Economic Development oversees this program.
The Targeted Jobs Withholding Tax Credit Program is a program for cities located adjacent to
neighboring states to remain competitive in attracting new jobs. Receiving project city status for
this program will make incentives available in the amount of up to tlu-ee percent of the wages
paid by the company on new eligible jobs. The program will only be available to four cities
which have been chosen as pilot project cities.
This program should be expanded to more communities that fit the qualifying characteristics.
This program would keep Iowa's communities that border other states more competitive when
attracting new business to the state.
Requested Action:
Support efforts to expand this program to allow more communities that fit the qualifying
characteristics to be eligible to receive the incentive. This program would help to keep Iowa's
communities that border other states more competitive when attracting new business to the state.
Economic Development
The role of city government in economic development is crucial. Economic activity requires
roads, streets, airports, water and sanitation. New jobs necessitate more and better housing.
Growing businesses seek quality of life amenities for employees and families, such as parks,
recreation and libraries. Protection and safety of property and life must be assured. This can
only be accomplished with the strong support of an effective city government.
Successful quality of life programs need continued funding, such as Vision Iowa, REAP, CAT
funds, RECAT Iowa Great Places, the Iowa Main Street program funds, and tax credits for
historic preservation.
Requested Action:
Protect and enhance economic development tools enabling cities in Iowa to promote economic
improvement throughout the state.
Eminent Domain
During 2006, the Legislature approved changes to the Eminent Domain Law. Included in the
changes, and of particular concern, is the requirement that seventy -five percent or more of the
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area included in the urban renewal plan must consist of property in a slum or blighted condition
at the time the plan was established in order for the entire project or acquisition plan area to be
subject to condemnation by the municipality. We believe that a 51 % threshold is more
reasonable. Furthermore, the new language provides that the project or acquisition plan area
shall only include the adjacent and contiguous parcels necessary for the completion of planned
activities for a specific business or housing project. This language would be limiting for
downtown development projects that may be larger in scope than just the parcels that meet the
definition of slum and blight. Lastly, the burden for the use of eminent domain for airport project
is increased by the requirement that the Board of Supervisors must hold a public hearing and
pass a resolution unless the airport improvement is FAA- required. This creates additional
layers of burden on a municipality.
Requested Action:
Support efforts to amend sections of the Eminent Domain Law to allow for changes as proposed
by the Iowa League of Cities and noted above.
Fully Funding Enrich Iowa Program
Enrich Iowa is a state aid program for Iowa's libraries. Until recently, Iowa was one of eight
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 increase funding for the Enrich Iowa program.
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
$5,000 to $6,000; 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 employees
purchasing or renting housing in the enterprise zone could access funds for their housing
needs.
10
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.
Hotel and Food Establishment License Fees
In the 2006 legislative session, House Study Bill (HSB) 648 was introduced. This bill proposed
increasing the hotel and food establishment license fees, bringing them in line with costs of
running the program. The bill passed in 2007 increased the various food license fees by a
range of 20 - 30 %. This increase will still not pay for the cost of doing risk -based inspections, as
required by Iowa Code.
Requested Action:
Support legislation that will fully fund State mandated health inspections for Hotel and Food
Establishments through increased license fees.
School Food Program Inspections
An amendment to Section 9(h) of the Richard B. Russell National School Lunch Act (42 U.S.C.
1758(f)(5)) went into effect July 2005. This amendment imposes an unfunded mandate
requiring at least two school food program inspections per year instead of one.
Now, the City of Dubuque Health Services Department will have to inspect school food lunch
programs (which actually cook food on -site vs. just serving food prepared at another site) two
times per year, but will not receive any license or inspection fees for the service. The City does
not believe it is necessary to inspect the school food lunch programs more than once per year
based on past inspections. This unfunded mandate will add twelve inspections for a total of 50
annual uncompensated inspections for school lunch programs.
Requested Action:
Oppose legislation for a second School Food Program inspection, and /or create a funding
mechanism to cover the costs of school lunch program inspections.
In addition, both the Health Services Department and the Housing and Community
Development Department would like Iowa Code Section 364.12 (h) changed. Currently, a notice
of violation must be sent via certified mail to a property owner if the City performs the required
mitigation of the problem and assesses the cost to the property owner. We suggest that a
notice be sent via regular mail to the property owner. Oftentimes, it is difficult for people to
collect or pickup certified mail, particularly if they are not home at time of delivery. Certified also
adds a significant cost ($2.87) to the mail of each notice.
11
411 Contributions
The City of Dubuque's contribution to the retirement system for police officers and firefighters
went from 19.9% of wages in Fiscal Year 2011 to 24.76% of wages in Fiscal Year 2012.
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, the cities' contributions to the system should be reduced.
411 Subrogation
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.
Seasonal Employees
Currently, temporary employees that accept a job that starts on a specific date and ends on a
specific date are eligible to collect unemployment. For example, temporary employees hired for
three or four months to mow lawns during the summer are allowed at the end of the summer to
collect unemployment even though they know the job is temporary when hired. This puts a
costly burden on the employer.
Requested Action:
Amend the unemployment law so that temporary employees are not allowed to collect
unemployment.
Underage and Binge Drinking
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.
12
Eliminate "Good Moral Character" language from Iowa Code
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 municipality's interpretation of "Person of Good Moral Character" prior to
issuing a liquor license.
Requested Action:
Urge legislators to eliminate "good moral character" language and replace it with objective
standards.
Airport Infrastructure Funding
At a minimum, increase funding for the highly successful Commercial Service Vertical
Infrastructure program to at least $1.75M (current appropriation of $1.5M) for facility
improvement projects at public - owned, public -use airports in Iowa.
Requested Action:
Increase funding for the Commercial Service Vertical Infrastructure program to at least $1.75M.
Air Service Retention
Iowa's economy depends on regular, dependable and affordable commercial air service.
Keeping service is essential to the economic recovery of all corners of the state. Recommend
the establishment of Air Service Retention Committee made up of a representative from the
Department of Transportation's Office of Aviation, a representative from each of the state's
commercial service airports, two representatives from commercial airlines serving the state and
a member of the majority and minority parties in the House and Senate. The Committee shall
develop a plan for the retention of current passenger airline services..
Requested Action:
Establishment of an Air Service Retention Committee..
Aviation Tax Policy
Iowa airports and aviation industry have requested sales and use tax policy changes to remain
competitive with our neighboring states. The repeal or capping of any aviation sales and use
tax exemption would severely cripple the state's airports and aviation industry.
Requested Action:
Maintain the aviation sales and use tax exemption.
Effective Control of Wildlife Aviation Hazards
Deer and other animals continue to be hazards to aviation in our state. Pilots and
airport managers report an alarming increase in the number of runway incursions
by wild animals. Public airports should be allowed to engage in timely and
appropriate depredation efforts for their facilities.
Requested Action:
Allow airports the use of rifles to eliminate wildlife hazards.
13
Rebuild Iowa
Provide for continuation of Rebuild Iowa Infrastructure Fund appropriations for vertical
infrastructure projects at both commercial and general aviation airports.
Expand Cities' Extraterritorial Jurisdiction
Cities have extraterritorial jurisdiction (ETJ) 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' ETJ 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
ETJ of cities to include review and approval of zoning changes.
Requested Action:
Support legislation enabling cooperative planning and effective land management practices.
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.
Requested Action:
Enact legislation allowing property owners to represent a majority of the 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.
14
Ambient Air Quality Rules
In July 2004 the Environmental Protection Commission set H2S limits 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 affect
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.
Increase REAP Funding in the Environment First Fund
REAP stands for Resource Enhancement and Protection. It is a program in the State of Iowa
that invests in, as its name implies, the enhancement and protection of the state's natural and
cultural resources.
The following four state agencies administer REAP programs:
Department of Natural Resources
Department of Agriculture and Land Stewardship, Division of Soil Conservation
Department of Cultural Affairs, State Historical Society
Department of Transportation
REAP funds go into eight different programs based on percentages that are specified in state
law. REAP Fund Allocation: First $350,000 each year goes to Conservation Education and 1%
of balance goes for DNR Administration. The remaining balance is then divided as follows:
1) DNR Open Space 28%
2) City Parks and Open Space 15%
3) Soil and Water Enhancement 20%
4) County Conservation 20%
5) DNR Land Management 9%
6) Historical Resources 5%
7) Roadside Vegetation 3%
REAP is funded from the state's Environment First Fund (Iowa gaming receipts) and from the
sale of the natural resource license plate. The state legislature sets the amount of REAP
funding every year, and in the recent past that level has been 12 million I . Interest from the
REAP account and receipts from the sale of natural resource license plates add about $450,000
to this appropriation for a total of $12.45 million a year.
In the last two years, REAP has been appropriated $15 million and $12million, compared to
the 22 year average of $11.4 million.
Requested Action:
Request that the Iowa Legislature work to increase REAP to full funding of $20 million,
Assessor's Bill
Property tax experts or representatives are now part of the tax appeal process. A tax
representative can file an appeal for a large commercial property under a contingency basis,
receiving their pay based on a percentage of the property tax savings they can achieve for their
client. In many of these cases little or no money is expended by the taxpayer. The
15
representative files a protest with the Board of Review and supplies little or no information to the
Board. The Board may deny the protest but the tax representative will file a protest to either
District Court or the Property Assessment Appeal Board. At this point the tax representative
may produce more information or they may try to negotiate a settlement. On the assessor's
side it may be very costly to hire appraisals and fight this out in Court. A single appraisal for a
large Commercial or Industrial property will easily exceed $5000.
Also, many appeals to the Board of Review are filed at the last minute with a statement such as
information to be presented at hearing. Many appellants never provide the information or
provide it very late in the Board of Review session so the Board is unable to reach a well
founded conclusion.
Requested Action:
Request the Iowa Legislature to limit appeals to District Court and the Property Assessment
Appeal Board to matters and information that were presented before the local Board of Review.
Ask the Iowa Legislature to review appeal dates and Board of Review sessions to allow
sufficient time for appellants to present all their information.
CAP Act of 2009 (H.R. 3745). The CAP (Community Access Preservation) Act of 2009
introduced by Wisconsin Rep Tammy Baldwin recognizes the important role that Public,
Educational, and Governmental (PEG) access channels play in local communities and
addresses some of the concerns facing these channels.
Legislation that establishes national standards for interoperable public safety standards
for first responders.
Legislation that preserves and extends municipal government authority to provide
communications services to their constituents.
Legislation that overturns the FCC cable franchise order and returns to the local
franchising scheme set out in the 1984 Cable Act.
Land Banking
In order to return blighted and abandoned properties to productive use quickly, states
have passed legislation that streamlines the tax foreclosure process by giving
ownership of these tax - reverted properties to the county treasurer sooner and allowing
city, county or state land banks to purchase these properties earlier in the tax
foreclosure auction process. Further legislative reform in these states has redirected
money collected from unpaid and delinquent property taxes toward land banks for
purposes of funding the land banks and for the purchase of tax - reverted properties.
The City of Dubuque will explore the formation of a land bank that would purchase tax -
reverted properties through the tax foreclosure process. The land bank would maintain
these properties until purchase by a responsible buyer, ensuring the properties' return
to productive use.
Requested Action:
Support the formation of a City of Dubuque Land Bank and work with the Iowa League
of Cities, the Metropolitan Coalition and ISAC to approve legislation redirecting money
collected from unpaid and delinquent property taxes toward the City of Dubuque Land
Bank for funding and for the purchase of tax - reverted properties.
16
Arts and Culture
Background
Arts and culture is a strong component of tourism, economic development and quality of life for
all Iowans. Great livable communities in Iowa must support culture, arts, history, and focused
community development. Investment in cultural programs improves the quality of life in Iowa
and helps to attract and retain a vibrant workforce which assists in developing and promoting
Iowa's economic vitality.
Iowa ranks 42nd of all states in per capita spending of $0.34 for arts and culture. The national
average is $.90. States with similar populations out rank Iowa. Utah spends $1.01 (14`h)
Arkansas spends $.74 (25`), and Mississippi spends $.65 (27`h)
In 2004, the Dubuque City Council approved an Arts and Cultural Affairs Advisory Committee,
$35,000 in annual project grants and established a Downtown Cultural Corridor. A $200,000
annual operating and special project support funding was established in 2005 and $300,000 in
capital funds was allocated for the Art on the River public art program for ten years. Dubuque
created a part time staff position of Arts and Cultural Affairs Coordinator in FY2009 with partial
funding from Iowa Community Cultural Grants in FY 2009, 2010 And 2011. However, with the
reduced ICCG funds available, funding was not received for FY 2012. The coordinator works
closely with the Commission to promote and increase awareness and market the arts and
activities and allocate budgeted funding for the arts and cultural activities. The position has
enabled the Commission to develop goals and priorities, to enhance the public art program by
creating standards of excellence using regional, state and national models and refining the grant
process to ensure the taxpayer's money is used in the best possible manner. Although much
has been accomplished, many opportunities remain to strengthen and expand Dubuque's
cultural vitality. The recent designation of the Historic Millwork District plan brings integrated
strategies that include design guidelines, historic preservation, community gardens, central
gathering spaces, arts venues and artistic streetscapes. The City markets itself as a major
tourist destination featuring world class museums, cultural opportunities, and historic
architecture. Over $1.7 million visitors come to Dubuque each year, many of them Iowans who
are vacationing closer to home. The Dubuque Chamber of Commerce estimates that at least
two thirds of the 98,000 people in Dubuque County visit the Port of Dubuque, where the City's
temporary art exhibit is held, one or more times in the course of a year.
The City of Dubuque has provided more than $1. 8 million dollars in funding for the arts since
the establishment of the City's Arts and Cultural Affairs Advisory Commission in 2004. The
Commission has managed the City's investment, allocated among three programs: $1.4 million
has been awarded through the Operating Support Grant Program; $275,000 has been awarded
through the Special Projects Grant Program that has leveraged a total of $588,550 in arts
projects in our community, and; $120,000 has funded the Art on the River annual temporary
public art exhibit at the Port of Dubuque.
Not only is the City of Dubuque reliant upon Department of Cultural Affairs funding for the arts,
most of the art and cultural organizations and schools in Dubuque regularly receive funding from
the various grant programs offered through the Department of Cultural Affairs,
The latest information from 2006 shows an economic impact of arts and cultural organizations in
Dubuque of $22 million. A new economic impact study from Americans for the Arts is being
conducted in 2011.
17
Requested Action:
Support programs in the Department of Cultural Affairs (Iowa Arts Council, State Historical
Society of Iowa) to continue to recognize and promote Iowa's cultural heritage as key in
recovery and strengthening of all Iowa communities. State funding of these programs leverages
local support for arts and cultural organizations, historical organizations, educational programs,
rehabilitation of historic buildings, and projects involving a variety of historic resources. These
cultural activities also employ accountants, designers, contractors, union workers, etc. Specific
programs to support include:
• Provide specific funding for the Cultural Leadership Partners program at $250,000 and for the
"Major and Mini Grants" program at $500,000 to ensure continuation of these programs without
dependence on budget appropriations for the Iowa Arts Council.
• Support funding for Iowa Community Cultural Grants at $300,000.
• Match the federal funding of $40,000 for Big Yellow School Bus Grants with $80,000 by the
state to double the required state level funding and expand program language to include all
historical and cultural destinations.
• Maintain funding for the Historic Site Preservation Grants in the Department of Cultural Affairs
at $1 million.
• Provide appropriate staff support within the Department of Cultural Affairs to provide previous
levels of services to communities and citizens of Iowa through all programs and departments.
Energy Efficiency & Renewable /Alternative Energy:
Recently, the American Council for an Energy- Efficient Economy ranked Iowa 12th in the nation
for its efforts to promote energy efficiency. Iowa scored highly in the category of building energy
codes as one of only 17 states with a statewide code that meets or exceeds the latest
International Energy Conservation Code standards for both residential and commercial
buildings. Businesses, residents and local governments have taken advantage of existing
incentive programs, but still have much work to do in order to make their new and existing
buildings more energy efficient. As energy efficiency is achieved, private and public
organizations as well as individuals have begun to explore a variety of alternative and
renewable energy options to increase their energy independence, reduce dependence on coal
and oil, reduce greenhouse gas emissions, improve the competitiveness of local business and
improve public health.
The City of Dubuque and local non - profits and businesses have established a strong focus on
significantly improving energy efficiency in municipal, commercial and residential buildings. The
City is also committed to growing the percentage of energy which comes from local renewable
or alternative energy sources..
Requested Action:
With the discontinuation of the Office of Energy Independence and its programs, it will be
critical for all state agencies (including, but not limited to, the Department of Economic
Development, Iowa Utility Board, Department of Natural Resources and Department of
Administrative Services) to develop programming, funding and regulatory flexibility to support
and promote the development of additional energy efficiency efforts and the adoption of
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renewable and alternative energy sources at the local level. Successful energy efficiency
incentive programs should be continued and Iowa should explore opportunities to remain
competitive with other states in offering incentives for the installation and utilization of renewable
and alternative energy. Specifically, the state should consider a progressive energy policy that
works with local governments and utilities to remove barriers to widespread renewable energy
use. In addition, we recommend the State review its existing legislative and regulatory
approaches and consider modifications that will facilitate the role of local government in creating
the environment and support for local energy efficiency and renewable energy efforts.
Food Residual Composting
Iowa Administrative Code 567 — Chapter 105 regulates the composting of various materials,
including yard waste, agricultural byproducts, garbage, dead animals, and food residuals. At
the present time, the noted regulations require costly infrastructure improvements before a
permit is granted by the Iowa Department of Natural Resources to allow the composting of food
residuals from homes, grocery stores, restaurants, and cafeterias. As a result, all but three (3)
of Iowa's forty -five (45) landfills continue to bury their service area's food residuals instead of
composting them.
Requested Action:
The City of Dubuque currently maintains a list of residences as well as large -scale
facilities, including grocery stores and hospitals, that are waiting to participate in a food
residual composting program. The State should work with local landfills to define
compromises that continue to protect Iowa's soils and waters while allowing local
governments to significantly expand their food residual composting programs.
Amend Iowa Administrative Code 567 — Chapter 105 to encourage Iowa's other forty -two (42)
landfills to compost, rather than landfill, food scrap residuals.
Healthy Local Foods
During the 2010 Legislative Session, the Legislature charged the Leopold Center for
Sustainable Agriculture with preparing a local food and farm plan containing policy and funding
recommendations for supporting and expanding local food systems and for assessing and
overcoming obstacles necessary to increase locally grown food production. The Healthy Local
Foods principle of Dubuque's sustainability model aims to provide benefits of wholesome food
from local producers, distributors, farms, gardens and hunters to all. The City and its partners
engaged in the Healthy Local Foods initiative have participated in the forming of the Local Food
& Farm Plan. In order for local institutions and consumers to increase their purchase and
consumption of local foods, barriers must be overcome that enable more produce and meat to
be produced, processed and sold locally. Various studies have shown the value of a strong
local food system as an economic development tool.
Requested Action:
Provide policy direction, funding and other resources to implement the recommendations of the
Local Food & Farm Plan delivered to the Legislature in January 2011.
Community Health Centers
In 2011, Crescent Community Health Center budgeted for 38% of patients seen to be
uninsured, meaning they pay zero on the sliding fee scale. As of October 2011, Crescent is
seeing 62% uninsured patients. Community Health Centers are now seeing IowaCares patients
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for primary care, which provides more access than the previous option of traveling only to Des
Moines or Iowa City. Community Health Centers cannot continue to provide services with this
ongoing financial loss. Specialty physicians and other specialty health care providers are willing
to volunteer at Community Health Centers, such as Crescent, but the cost of malpractice
insurance is prohibitive.
Requested Action:
Request more funding be allocated to the IowaCare line item for the participating Federally
Qualified Health Centers (FQHCs) Community Health Centers.
Request a direct supplemental funding award from the State to help offset the costs of the rising
number of uninsured patients being seen by the Community Health Centers (FQHCs) across
the state.
Based on a review of the Volunteer Health Care Provider rules, seek changes to the program
that would allow specialists to volunteer at the Community Health Centers (FQHCs) and provide
services to uninsured and IowaCare members
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