Legislative Issues
October 28, 2005
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT:
City of Dubuque State Legislative Issues
Assistant City Manager Cindy Steinhauser is recommending the adoption of the City of
Dubuque State Legislative Issues for the 2006 Legislative Session. The changes from
last year are indicated.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
____________________________________
Michael C. Van Milligen
MCVM/cs
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
City Of Dubuque
State Legislative Issues
For The 2006 Session
State Budget
In response to a revenue shortfall during the 2003 and 2004 session the State of
Iowa implemented across-the-board cuts in expenses. Some of these cuts
reduced revenues to cities, with no relief to cities for state-mandated programs.
Concerns remain over the impact of the reduced revenue to cities and that
similar action will be taken in the 2006 session. Reduced state revenues
negatively impact property taxes.
Requested Action: The state should restore revenues to cities that were cut in
2003 and 2004 in an effort to make cities whole and to help reduce the burden on
property tax payers.
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.
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 onto 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 and 78% in 2005-2006.
Requested action: Reinstate full funding for the Homestead Tax Credit.
Tax Increment Financing (TIF)
The Iowa Code provide 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.
1
Requested Action: Support efforts to maintain Tax Increment Financing as an
economic development financing tool.
Sales Tax Refund for Downtowns
The Iowa General Assembly enacted legislation this year that provided 100%
state sales tax abatement to the new racetrack in Newton. The downtowns in
cities across the state, both large and small, are desperately in need of
redevelopment. The state sales tax abatement could be structured as the
Newton project, with 100% for ten years or some graduated rate over 10 years or
less. The graduated option would be similar to Iowa Code 427B.1, which allows
for partial property tax exemption for industrial real estate.
The increase in property tax to schools and the additional income taxes from jobs
in these retail establishments would more than offset the state sales tax losses
from projects that may have occurred anyway. The added vitality in small towns
across Iowa would make Iowa a more attractive place to live, work and locate a
business.
Requested Action: Support efforts to establish a state sales tax abatement for
downtown redevelopment.
Funding of Major Transportation Projects
The State of Iowa has used a strategy of allocating funds for completing the
major transportation projects in the state as opposed to using a piecemeal
approach. This strategy has been successful with extensive work being
completed on major corridors. The same strategy should be used for major
projects in larger cities, which require significant funding commitments for
completing the projects in a reasonable amount of time. Examples include the
Southwest Arterial and the Julien Dubuque Bridge.
Requested Action: Support efforts to continue the strategy for funding major
transportation projects throughout the State including projects that have federal
earmarks.
Property Tax
The current tax structure for state and local governments is a mix of tax laws,
rates and policies that do not provide for a fair and consistent tax system. The
Iowa League of Cities and the Iowa State Association of Counties (ISAC) have
identified key areas needing revision for a comprehensive tax reform in Iowa.
They include: Changes to assessment and valuation procedure, city and county
budgeting processes, developing an alternative to current property tax limitations,
elimination of the rollback formula and homestead exemption.
2
Requested action: Work with the Iowa League of Cities and ISAC to approve
legislation to design a tax structure that provides tax equity and policies that are
consistent with an overall direction for state and local government taxation.
Fully Funding Enrich Iowa Program
Enrich Iowa is a state aid program for Iowa’s libraries. Until recently, Iowa was
one of 8 states without direct state aid to libraries. Current state funding is at $1
million statewide versus the recommended $3 million for full funding. If Enrich
Iowa were fully funded, the Carnegie-Stout Public Library could realize at least
$100,000 a year in state aid.
Requested Action: Support efforts to fully fund the Enrich Iowa program at $3
million statewide.
Municipal Communication Utilities
Communities across the state are considering creating municipal communication
utilities to provide a vehicle for companies to offer state-of-the-art services to
citizens and business. The option to form a municipal communications utility has
been a critical negotiation tool for cities to use when trying to negotiate more
affordable cable and internet service for citizens.
Requested action: Resist efforts of telephone, cable T.V. and other
telecommunication companies to pass a state law to inhibit the creation of
municipal communication utilities.
Telecommunications
Cities maintain and provide data on the location of public utilities, however, no
information is available from telecommunication companies on the location of
fiber optic and other telecommunication lines. This information is critical for
negotiating development agreements for businesses desiring to expand or locate
in a community.
Requested action: Pass legislation requiring that all video, telecommunications
and Internet providers provide a map of their infrastructure to each municipality
they serve.
Rescind House File 324 Reporting requirements
In the 2001 General Assembly House File 324 (HF 324) was enacted. This law
set up numerous new requirements for cities concerning bidding for street, bridge
and culvert projects involving construction, reconstruction and improvements
costing over $25,000 ($50,000 for cities over 50,000 in population).
One requirement was a new report that is labor intensive and taxing to city
public works departments. In addition to the report that cities currently submit
on street receipts and expenditures using road use tax funds, the new report
3
requires cities to provide detailed cost accounting for all projects within 90
percent of the bid threshold. The report also includes a statement of the cost
of purchasing, leasing, or renting construction or maintenance equipment.
Since the reports are extremely detailed and some cities do hundreds of street
projects annually, this new requirement will entail a city needing additional
resources. HF 324 did not charge the Iowa Department of Transportation to
use this new report for any specific state purpose, resulting in 950 cities
expending resources that could be used elsewhere. This becomes particularly
onerous for small cities that publicly bid the majority of street projects.
Support effort to reduce the reporting requirements for HF
Requested Action:
324.
Hotel and Food Establishment license fees
A draft bill the Iowa Department of Inspections and Appeals (IDIA) will be
submitted to the Iowa Legislature in the upcoming legislative session. This bill
increases the hotel and food establishment license fees which will bring them in
line with costs of running the program. The Bill also includes a Plan Review fee
based on establishment risk and square footage, along with a reinspection fee for
critical violations found. In FY 06, the projected cost for conducting the Food
Inspection Activity is $77,612, while our projected revenue is $69,000.
Requested Action:
Support proposed legislation that will fully fund State mandated health
inspections for Hotel and Food Establishments through increased license fees.
School Food Program Inspections
An additional food inspection legislative issue is based on legislation that became
effective July 2005. 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. This
amendment imposes an unfunded mandate requiring at least two school food
program inspections per year instead of one.
Currently, the City of Dubuque Health Services Department inspects school food
lunch programs one time per year, but does not receive any license or inspection
fees for the service. It is not necessary to inspect the school food lunch
programs more than once per year and this additional requirement would put an
additional workload burden on staff.
Requested Action:
Oppose legislation to add a second School Food Program inspection.
Bed and Breakfast Tax Classification
The State of Iowa department of revenue rule says that regardless of commercial
use, a "single family dwelling" is to be classified for tax purposes as "residential."
4
The court of appeals agrees with this interpretation and states that because a
bed and breakfast is used as a single family dwelling and a bed and breakfast
and was constructed as a single family dwelling it fits the exception in the
revenue rule that regardless of commercial use, a "single family dwelling" is
"residential. This interpretation could have sweeping ramifications on
commercial and other property once constructed as residential but now zoned
and operating as office, commercial or other non-residential use.
Requested action:
Adopt legislation that modifies the revenue rule on the classification of property
so that bed and breakfast and other businesses operating in what were "single
family dwellings" are taxed as commercial.
411 Contributions
The City of Dubuque’s contribution to the retirement system for police officers
and firefighters went from 17% of wages in fiscal year 2003 to 28.21% of wages
in fiscal year 2006. The additional annual cost associated with the increases in
the City’s contribution to the police officer and firefighter retirement system is
$1,210,203. The contribution rate for police officers and firefighters has
remained unchanged since Fiscal Year 1997. Their contribution is 9.35% of
wages.
Requested action:
Any future increases in funding to support the retirement system for police
officers and firefighters should be borne by the employees and not the cities. In
the event there is a reduction in the funding needed to support the retirement
system for police officers and firefighters, cities contribution to the system should
be reduced.
411 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.
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
5
discourage this problem, which is particularly prevalent in college age students.
In an effort to combat underage consumption and “Binge Drinking” by our college
age population, we would ask legislative consideration to increase the simple
misdemeanor penalty found in Iowa Code Chapter 321.216 and 123.50 to a
higher penalty.
Requested action:
Pass legislation to increase the simple misdemeanor penalty found in Iowa Code
Chapter 321.216 and 123.50 to a higher penalty.
Expand Definition of Good Moral Character
One of the criteria for the issuance of a State of Iowa liquor license is determined
by “Person of Good Moral Character” as defined in State of Iowa Code 123.3
(26)(d). The State takes into consideration the local municipalities local
interpretation of “Person of Good Moral Character” prior to issuing a liquor
license.
Requested action:
Review the definition 123.3(26)(d) “Person of Good Moral Character” by
consideration to expand felony convictions to include appropriate indictable
misdemeanors (i.e. convictions of O.W.I. (321J.2), Bootlegging (123.59) and
other such liquor violations)
Cultural and Entertainment District Incentives
In 2004 the State of Iowa established a Cultural and Entertainment District
program. The purpose of this program is to promote arts and culture in Iowa
communities and to promote renovation of historic buildings to house cultural
programs. The initial program was funded with $1 million in historic tax credits
for 2005 and 2006 for eligible projects in these districts.
Requested action: Continue funding for tax credits for properties located in
State of Iowa recognized Cultural and Entertainment Districts.
Civil Rights Enforcement
Civil rights agencies are the law enforcement tools for civil rights laws. The Iowa
Commission works in partnership with the Dubuque Human Rights Commission
and other local commissions to successfully leverage resources to enforce civil
rights laws across Iowa. The Iowa Commission also is responsible for
enforcement of civil rights in Dubuque County. The state and local agencies are
leaders in efforts to educate business and industry on civil rights laws, on
diversity, and preventing discrimination. The Iowa Civil Rights Commission has
faced severe budget reductions and is currently operating at the lowest staffing
levels in twenty years. Reduced support for the Iowa Civil Rights Commission
impedes its ability to protect the public, and sends the wrong message regarding
the value we place on diversity and inclusivity, at a time when we are struggling
6
as a state to attract economic development and build our workforce. Civil rights
protection provides the mechanism to address and prevent problems in the
workplace that could hamper new Iowans from locating and remaining in our
state.
Requested Action: Support budget increases for the Iowa Civil Rights
Commission to enable the Commission to return to adequate staffing and to
further its enforcement initiatives.
Enterprise Zone Incentives
The Enterprise Zone legislation was written to promote private investment in
economically distressed areas of a city or county. To assist new employees of
companies locating in enterprise zones, the legislation provides for employers to
establish a capital fund for down payments or rental subsidies. The business
funds this program through a credit from state withholding taxes, based on the
wages paid to the participating employees. An amount equal to 1.5 percent of
the gross wages paid by the employer is credited from the payment otherwise
withheld, and used to capitalize this fund.
This feature of the legislation has not been utilized to date. One reason is that
the credit produces so little capital for the housing assistance program. For an
employee earning $10 per hour, the credit equals approximately $300. Typically,
down payment assistance programs offer $3,000 to $5,000; rental subsidy
programs average $2,500 to $3,000 annually. In order to make this program
effective, the credit for withholding should be increased.
Another option is to allow the credit to be “pooled,” to be made available to all
eligible employees. As the legislation currently is written, the 1.5 percent credit is
made available on the basis of withholding from individual employees – for the
benefit of only that employee. If the credit could be aggregated, a larger capital
fund could be established, from which all employee purchasing or renting
housing in the enterprise zone could access funds for their housing needs.
Another reason for lack of employer participation in this program is that the
legislation requires the employer to choose between use of the tax credit for job
training or for providing a housing assistance program. Employers to date have
chosen to use the credit to pay for training new employees.
Requested action: The legislation should be amended to provide the credit for
both job training and employee housing assistance and to “pool” the funds. This
will increase the tax credit and increase interest in the program by employers.
Airport Funding
Designate at least $3 million a year for aviation projects and programs through
the establishment of the new Aviation an Iowa Resource or AIR fund.
7
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
8
appointees “arbitrary and capricious.” The City Council would support an
alternative process.
Requested action: Consider legislation providing an alternative appeals
process regarding an action of the historic preservation commission.
Ambiant Air Quality Rules
In July 2004 the Environmental Protection Commission set H2S limites at 30
parts per billion (ppb) with a 60 minute average. Due to the fact that this is an air
quality rule, it has to effect everyone, farmers, industries and municipalities alike.
This rule could have disastrous effects on wastewater plants causing cities to
provide for major H2S, ammonia and other mercapton control system that are
very expensive and costly to operate.
Requested action: Enact legislation that exempts local government from the 30
ppb rule.
9
City Of Dubuque
State Legislative Issues
For The 2006 Session
Deleted:
2005
State Budget
In response to a revenue shortfall during the 2003-2004 session the State of
Deleted:
last
Iowa implemented across-the-board cuts in expenses. Some of these cuts
reduced revenues to cities, with no relief to cities for state-mandated programs.
Concerns remain over the impact of the reduced revenue to cities and that
similar action will be taken in the 2005 session. Reduced state revenues
negatively impact property taxes.
Requested Action: The state should restore revenues to cities that were cut in
2003 and 2004 in an effort to make cities whole and to help reduce the burden on
property tax payers.
State Mandates
(relocated from Page 3)
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.
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 onto 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 and 78% in 2005-2006.
Requested action: Reinstate full funding for the Homestead Tax Credit.
Tax Increment Financing (TIF)
The Iowa Code provide 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.
1
Formatted: Font: 11 pt, Not Bold,
Italic
Formatted: Font: 11 pt, Not Bold,
Italic
Requested Action: Support efforts to maintain Tax Increment Financing as an
economic development financing tool.
Sales Tax Refund for Downtowns
The Iowa General Assembly enacted legislation this year that provided 100%
state sales tax abatement to the new racetrack in Newton. The downtowns in
cities across the state, both large and small, are desperately in need of
redevelopment. The state sales tax abatement could be structured as the
Newton project, with 100% for ten years or some graduated rate over 10 years or
less. The graduated option would be similar to Iowa Code 427B.1, which allows
for partial property tax exemption for industrial real estate.
The increase in property tax to schools and the additional income taxes from jobs
in these retail establishments would more than offset the state sales tax losses
from projects that may have occurred anyway. The added vitality in small towns
across Iowa would make Iowa a more attractive place to live, work and locate a
business.
Requested Action: Support efforts to establish a state sales tax abatement for
downtown redevelopment.
Funding of Major Transportation Projects
The State of Iowa has used a strategy of allocating funds for completing the
major transportation projects in the state as opposed to using a piecemeal
approach. This strategy has been successful with extensive work being
completed on major corridors. The same strategy should be used for major
projects in larger cities, which require significant funding commitments for
completing the projects in a reasonable amount of time. Examples include the
Southwest Arterial and the Julien Dubuque Bridge.
Requested Action: Support efforts to continue the strategy for funding major
transportation projects throughout the State including projects that have federal
Deleted:
state
earmarks.
Property Tax
The current tax structure for state and local governments is a mix of tax laws,
rates and policies that do not provide for a fair and consistent tax system. The
Iowa League of Cities and the Iowa State Association of Counties (ISAC) have
identified key areas needing revision for a comprehensive tax reform in Iowa.
They include: Changes to assessment and valuation procedure, city and county
budgeting processes, developing an alternative to current property tax limitations,
elimination of the rollback formula and homestead exemption.
2
Requested action: Work with the Iowa League of Cities and ISAC to approve
legislation to design a tax structure that provides tax equity and policies that are
consistent with an overall direction for state and local government taxation.
Fully Funding Enrich Iowa Program
Deleted:
State Mandates¶
Cities are often faced with
Enrich Iowa is a state aid program for Iowa’s libraries. Until recently, Iowa was
implementing mandates from the
one of 8 states without direct state aid to libraries. Current state funding is at $1
state and federal governments
without receiving the necessary funds
million statewide versus the recommended $3 million for full funding. If Enrich
for implementation¶
Iowa were fully funded, the Carnegie-Stout Public Library could realize at least
¶
Requested action: Enact legislation
$100,000 a year in state aid.
that exempts local government from
providing any new service or
engaging in any new activities
Requested Action: Support efforts to fully fund the Enrich Iowa program at $3
mandated by the state if the state
million statewide.
does not provide full funding.¶
¶
Municipal Communication Utilities
Communities across the state are considering creating municipal communication
utilities to provide a vehicle for companies to offer state-of-the-art services to
citizens and business. The option to form a municipal communications utility has
been a critical negotiation tool for cities to use when trying to negotiate more
affordable cable and internet service for citizens.
Requested action: Resist efforts of telephone, cable T.V. and other
telecommunication companies to pass a state law to inhibit the creation of
municipal communication utilities.
Telecommunications
Deleted:
OpportunityIowa ¶
Cities maintain and provide data on the location of public utilities, however, no
Communities across the state are
information is available from telecommunication companies on the location of
considering creating fiber optic
utilities to provide a vehicle for
fiber optic and other telecommunication lines. This information is critical for
companies to offer state-of-the-art
negotiating development agreements for businesses desiring to expand or locate
services to citizens and business. ¶
¶
in a community.
Requested action: Resist efforts of
cable T.V. companies to pass a state
law to prohibit fiber optic utilities.¶
Requested action: Pass legislation requiring that all video, telecommunications
and Internet providers provide a map of their infrastructure to each municipality
they serve.
Rescind House File 324 Reporting requirements
In the 2001 General Assembly House File 324 (HF 324) was enacted. This law
set up numerous new requirements for cities concerning bidding for street, bridge
and culvert projects involving construction, reconstruction and improvements
costing over $25,000 ($50,000 for cities over 50,000 in population).
One requirement was a new report that is labor intensive and taxing to city
public works departments. In addition to the report that cities currently submit
3
Formatted: Font: (Default) Times
New Roman
Formatted: Normal
on street receipts and expenditures using road use tax funds, the new report
requires cities to provide detailed cost accounting for all projects within 90
percent of the bid threshold. The report also includes a statement of the cost
of purchasing, leasing, or renting construction or maintenance equipment.
Since the reports are extremely detailed and some cities do hundreds of street
projects annually, this new requirement will entail a city needing additional
resources. HF 324 did not charge the Iowa Department of Transportation to
use this new report for any specific state purpose, resulting in 950 cities
expending resources that could be used elsewhere. This becomes particularly
onerous for small cities that publicly bid the majority of street projects.
Support effort to reduce the reporting requirements for HF
Requested Action:
324.
Hotel and Food Establishment license fees
A draft bill the Iowa Department of Inspections and Appeals (IDIA) will be
submitted to the Iowa Legislature in the upcoming legislative session. This bill
increases the hotel and food establishment license fees which will bring them in
line with costs of running the program. The Bill also includes a Plan Review fee
based on establishment risk and square footage, along with a reinspection fee for
critical violations found. In FY 06, the projected cost for conducting the Food
Inspection Activity is $77,612, while our projected revenue is $69,000.
Requested Action:
Support proposed legislation that will fully fund State mandated health
inspections for Hotel and Food Establishments through increased license fees.
School Food Program Inspections
An additional food inspection legislative issue is based on legislation that became
effective July 2005. 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. This
amendment imposes an unfunded mandate requiring at least two school food
program inspections per year instead of one.
Currently, the City of Dubuque Health Services Department inspects school food
lunch programs one time per year, but does not receive any license or inspection
fees for the service. It is not necessary to inspect the school food lunch
programs more than once per year and this additional requirement would put an
additional workload burden on staff.
Requested Action:
Oppose legislation to add a second School Food Program inspection.
4
Bed and Breakfast Tax Classification
The State of Iowa department of revenue rule says that regardless of commercial
use, a "single family dwelling" is to be classified for tax purposes as "residential."
The court of appeals agrees with this interpretation and states that because a
bed and breakfast is used as a single family dwelling and a bed and breakfast
and was constructed as a single family dwelling it fits the exception in the
revenue rule that regardless of commercial use, a "single family dwelling" is
"residential. This interpretation could have sweeping ramifications on
commercial and other property once constructed as residential but now zoned
and operating as office, commercial or other non-residential use.
Requested action:
Adopt legislation that modifies the revenue rule on the classification of property
so that bed and breakfast and other businesses operating in what were "single
family dwellings" are taxed as commercial.
411 Contributions
The City of Dubuque’s contribution to the retirement system for police officers
and firefighters went from 17% of wages in fiscal year 2003 to 28.21% of wages
in fiscal year 2006. The additional annual cost associated with the increases in
the City’s contribution to the police officer and firefighter retirement system is
$1,210,203. The contribution rate for police officers and firefighters has
remained unchanged since Fiscal Year 1997. Their contribution is 9.35% of
wages.
Requested action:
Any future increases in funding to support the retirement system for police
officers and firefighters should be borne by the employees and not the cities. In
the event there is a reduction in the funding needed to support the retirement
system for police officers and firefighters, cities contribution to the system should
be reduced.
411 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.
5
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.
Expand Definition of Good Moral Character
One of the criteria for the issuance of a State of Iowa liquor license is determined
by “Person of Good Moral Character” as defined in State of Iowa Code 123.3
(26)(d). The State takes into consideration the local municipalities local
interpretation of “Person of Good Moral Character” prior to issuing a liquor
license.
Requested action:
Review the definition 123.3(26)(d) “Person of Good Moral Character” by
consideration to expand felony convictions to include appropriate indictable
misdemeanors (i.e. convictions of O.W.I. (321J.2), Bootlegging (123.59) and
other such liquor violations)
Cultural and Entertainment District Incentives
In 2004 the State of Iowa established a Cultural and Entertainment District
program. The purpose of this program is to promote arts and culture in Iowa
communities and to promote renovation of historic buildings to house cultural
programs. The initial program was funded with $1 million in historic tax credits
for 2005 and 2006 for eligible projects in these districts.
Deleted:
This funding has since
been removed and the program has
no financial incentives for
Requested action: Continue funding for tax credits for properties located in
communities to become a Cultural
and Entertainment District.¶
State of Iowa recognized Cultural and Entertainment Districts.
Deleted:
Approve
Civil Rights Enforcement
Civil rights agencies are the law enforcement tools for civil rights laws. The Iowa
Commission works in partnership with the Dubuque Human Rights Commission
and other local commissions to successfully leverage resources to enforce civil
rights laws across Iowa. The Iowa Commission also is responsible for
enforcement of civil rights in Dubuque County. The state and local agencies are
leaders in efforts to educate business and industry on civil rights laws, on
diversity, and preventing discrimination. The Iowa Civil Rights Commission has
6
faced severe budget reductions and is currently operating at the lowest staffing
levels in twenty years. Reduced support for the Iowa Civil Rights Commission
impedes its ability to protect the public, and sends the wrong message regarding
the value we place on diversity and inclusivity, at a time when we are struggling
as a state to attract economic development and build our workforce. Civil rights
protection provides the mechanism to address and prevent problems in the
workplace that could hamper new Iowans from locating and remaining in our
state.
Requested Action: Support budget increases for the Iowa Civil Rights
Commission to enable the Commission to return to adequate staffing and to
further its enforcement initiatives.
Enterprise Zone Incentives
The Enterprise Zone legislation was written to promote private investment in
economically distressed areas of a city or county. To assist new employees of
companies locating in enterprise zones, the legislation provides for employers to
establish a capital fund for down payments or rental subsidies. The business
funds this program through a credit from state withholding taxes, based on the
wages paid to the participating employees. An amount equal to 1.5 percent of
the gross wages paid by the employer is credited from the payment otherwise
withheld, and used to capitalize this fund.
This feature of the legislation has not been utilized to date. One reason is that
the credit produces so little capital for the housing assistance program. For an
employee earning $10 per hour, the credit equals approximately $300. Typically,
down payment assistance programs offer $3,000 to $5,000; rental subsidy
programs average $2,500 to $3,000 annually. In order to make this program
effective, the credit for withholding should be increased.
Another option is to allow the credit to be “pooled,” to be made available to all
eligible employees. As the legislation currently is written, the 1.5 percent credit is
made available on the basis of withholding from individual employees – for the
benefit of only that employee. If the credit could be aggregated, a larger capital
fund could be established, from which all employee purchasing or renting
housing in the enterprise zone could access funds for their housing needs.
Another reason for lack of employer participation in this program is that the
legislation requires the employer to choose between use of the tax credit for job
training or for providing a housing assistance program. Employers to date have
chosen to use the credit to pay for training new employees.
Requested action: The legislation should be amended to provide the credit for
both job training and employee housing assistance and to “pool” the funds. This
will increase the tax credit and increase interest in the program by employers.
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Airport Funding
Designate at least $3 million a year for aviation projects and programs through
the establishment of the new Aviation an Iowa Resource or AIR fund.
Rebuild Iowa
Provide for continuation of Rebuild Iowa Infrastructure Fund appropriations for
.
vertical infrastructure projects at both commercial and general aviation airports
Deleted:
Military Tax Credit¶
The State of Iowa provides for
Expand Cities’ Extraterritorial Jurisdiction
veterans to receive a military tax
Cities have extraterritorial jurisdiction (ETJ) for up to two miles from their
credit on their property taxes. The
credit reduces their City property tax
corporate limits for subdivision review and approval only if the County has zoning
by the levy rate of the City, which is
for the rural areas. Extending the cities’ ETJ to include review and approval of
$10.76 per $1,000 of valuation. The
State, however, reimburses the City
zoning changes would facilitate planned and managed growth. Legislation
at a much lower rate, which
should provide incentives for governments to voluntarily plan together, and
potentially will be reduced again.
This leaves a substantial deficit for
identify recommended land use impact to be considered during the planning
other property owners to pay.¶
process. The League supports legislation that expands land management
¶
Requested action: Enact legislation
practices such as ETJ of cities to include review and approval of zoning changes.
to fully reimburse cities for the State
of Iowa’s military tax credits.¶
Requested action: Support legislation enabling cooperative planning and
effective land management practices.
Deleted:
Eliminate the “20%
Objection Rule” for Rezonings¶
Property Owners on Historic Preservation Commissions
Section 414.5 of the Iowa Code
Section 303.34 of the Iowa Code requires that: “At least one resident of each
requires a favorable vote by three-
fourths of the City Council members –
designated area of historical significance shall be appointed to the commission.”
a 6 to 1 vote – to approve a rezoning
This requirement is problematic for the City of Dubuque’s Old Main Historic
request over the written objections of
20 percent or more of the owners of
District, which is primarily commercial. It would be beneficial for the City in the
the property being rezoned, or 20
recruitment and retention of commissioners to be able to appoint property owners
percent or more of the property
owners within 200 feet of the subject
to represent historic districts. Furthermore, since historic preservation
property. The concepts that nearby
regulations apply to the rehabilitation, renovation and restoration of property,
property owners have a say in
rezoning cases is valid; however, this
allowing property owners to serve on the commission would be appropriate.
must be balanced against the needs
of the entire community. At 20
percent, a minority of property owners
Furthermore, some Iowa cities are experiencing burgeoning commissions as
can dictate the outcome of community
historic districts are designated and representatives of each district are
development, especially when one
property owner with a large tract of
majority
appointed. To avoid “over-populating” a commission, allowing a of the
land can constitute the entire 20
districts to be represented on a historic preservation commission would be
percent.¶
¶
appropriate.
Requested action: Raise the
“objection percentage” of owners of
property within 200 feet from 20
Requested action: Enact legislation allowing property owners to represent
percent to a simple majority (51%); or
historic districts on the Historic Preservation Commission.
require a favorable vote by two-thirds
of the City Council members, or a 5 to
2 vote, when the objection threshold
is reached.¶
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Appeal of Actions by Historic Preservation Commission
Section 303.34 of the Iowa Code states that an aggrieved party may appeal the
action of a historic preservation commission to the City Council, and then to
district court. The City Council, like the court, has to consider whether the
commission exercised its powers and followed the guidelines established by law
and ordinance, and whether the commission’s action was “patently arbitrary and
capricious.” This process places the City Council in the difficult and
uncomfortable position of interpreting technical guidelines and determining their
appointees “arbitrary and capricious.” The City Council would support an
alternative process.
Requested action: Consider legislation providing an alternative appeals
process regarding an action of the historic preservation commission.
Ambiant Air Quality Rules
In July 2004 the Environmental Protection Commission set H2S limits at 30 parts
Deleted:
e
per billion (ppb) with a 60 minute average. Due to the fact that this is an air
quality rule, it has to effect everyone, farmers, industries and municipalities alike.
This rule could have disastrous effects on wastewater plants causing cities to
provide for major H2S, ammonia and other mercapton control system that are
very expensive and costly to operate.
Requested action: Enact legislation that exempts local government from the 30
ppb rule.
9
ILC
OWA EAGUE OF ITIES
2006LP
EGISLATIVE RIORITIES
Economic Development
Protect and enhance economic development tools enabling cities in Iowa to promote
economic improvement throughout the state.
Background
Cities drive economic development in Iowa. Tax increment financing (TIF) is the primary
local development tool and must be protected or enhanced. Local government financing
tools need to be diversified. Legislators will consider restrictions to eminent domain,
potentially inhibiting this important tool that already protects property owners while
enabling needed development. Successful quality of life programs need continued
funding, such as Vision Iowa, Iowa Great Places, and tax credits for historic
preservation.
Pensions
Support legislation that strengthens actuarial soundness and fairly allocates the
contribution rates among participating parties while opposing any expansion of benefits
under the Iowa Public Employee Retirement System (IPERS) or the Municipal Fire and
Police Retirement System of Iowa (MFPRSI).
Background
Legislators will consider pension issues in 2006. The League will advocate for a
reasonable distribution between employer and employee should the IPERS contribution
rate be increased, while recognizing that MFPRSI policy has a more significant impact
to many cities. Any new benefits or expansion of existing benefits will be opposed.
Increased state contributions to the MFPRSI system will be sought.
Property Tax Reform
Support a property tax reform initiative that eliminates inequities caused by rollback;
improves accountability to taxpayers; allows cities to continue to provide locally
determined services effectively and efficiently; and enables and protects other city
revenues.
Background
Legislators will consider property tax reform legislation again in 2006. The League will
again coordinate a comprehensive reform initiative with the Iowa State Association of
Counties, streamlined from our original joint proposal made in 2005. The proposed 2006
priority language outlines problems that true reform must address including eliminating
the rollback formula, improving the budget reporting process, establishing reasonable
limitations and protecting current tax base. Any proposals to erode existing tax base,
1
such as reclassifying apartments or worsening the rollback formula, will be opposed.
Any property tax changes may reduce increment available for TIF debt repayment,
requiring improvements to other financing options. Alternative revenues will be
promoted in the interest of holding the line on property taxes.
2