State Legislative Issues 2008 SessionTHE CTTY OF
DUB E
Masterpiece on the Mississippi
MEMORANDUM
October 30, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: 2008 State Legislative Issues
Assistant City Manager Teri Goodmann is recommending adoption of the 2008 State
Legislative Issues, as recommended by City staff. I believe these are consistent with
the City Council priorities.
concur with the recommendation and respectfully request Mayor and City Council
approval.
L 1
Michael C. Van Milligen t ~7f /l
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 2008 Session
Franchise Fee
The Iowa Supreme Court in Kragnes vs. City of Des Moines held that a franchise fee for
the use of public right of way by a utility cannot exceed the cost of regulating the utility.
Public rights of way are valuable public assets and utilities should be required to
compensate the public for the use of the rights of way over and above the cost
associated with regulating the utility. Many cities have negotiated franchise fees with
utilities based upon a percentage of gross revenue for use of the right of way that
exceed the costs of regulation and provide for compensation to the public for the
privilege of using these public assets..
Requested action: Support efforts to allow franchise fees to include compensation for
the use of the rights of way as well as the costs of regulating the utilities.
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 $20 million per year, with projects waiting in
line for tax credits to become available in future years. Over the last few years, the
historic preservation tax credits have been reserved out to 2016, representing over $140
million in investment in Iowa's resources and communities.
Dubuque has benefited from six state historic tax credit projects, which have added far
more to our financial system than a simple single storefront project as listed above. The
Cooper Wagon Works Building/Bricktown, the Town Clock Building of Cottingham &
Butler Insurance, the Iowa Inn (Henry Stout House) senior housing project, the
Heartland Financial Operations Center, the Platinum Services building, and the Red
House Gallery have added over 211 permanent jobs to our economy, not including the
construction jobs to complete the large projects. Perhaps as important are the multiple
smaller projects that have been initiated as a direct result of these buildings'
revitalizations.
Requested Action: Remove the cap on the historic preservation tax incentives.
Sales Tax Refund for Downtowns
The Iowa General Assembly enacted legislation in 2006 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 4276.1, 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 rebate for downtown
redevelopment.
SW ArterialiHwy 32
The Dubuque City Council, the Dubuque County Board of Supervisors, and Dubuque
Metropolitan Area Transportation Study (DMATS) has identified the completion of the
SW Arterial/Hwy 32 project as the No. 1 surface transportation priority in the Dubuque
area. The proposed SW Arterial/Hwy 32 project will be a 6.1-mile, four-lane divided
freeway with priority 1-access control as an alternative route for traffic through
southwestern Dubuque and will connect the new Dubuque Technology Park on U.S.
Hwy 61/151 with the new Dubuque Industrial Center West, and the existing Dubuque
Industrial Center near U.S. Hwy 20. The highway then extends north to John Deere
Dubuque Works.
Preliminary project cost estimates, which include engineering design, the acquisition of
all right-of-way required for the ultimate build-out of the full four-lane project, resource
mitigation and the construction of the interim two-lane highway is $80,350,000. The
DMATS Organization, has committed $10 million in Surface Transportation Program
funds for the facility. The City is also seeking financial assistance through the State of
Iowa Department of Transportation Revitalize Iowa's Sound Economy (RISE) program.
In February 2003, Senator Tom Harkin announced federal budget approval of
$1,900,000 to complete the preliminary engineering design phase.
The City has agreed to manage the next phase of the project, and in January of 2005
the City and the Iowa DOT executed the Consultant Professional Services Agreement
for Earth Tech, Inc. to complete Preliminary Engineering Design Services for the
Improvement of the SW Arterial/Hwy 32. The preliminary design phase is anticipated to
be complete in February 2008. In February of 2005, the City received the issuance of
Environmental Concurrence and the Finding of No Significant Impact (FONSI) from the
various regulatory agencies and has completed the Environmental Assessment phase of
the project.
Due to Project funding constraints, it was decided that the project would need to be
developed in three (3) stages. The initial stage (Phase I) would include the preliminary
design and development of plans for the four-lane freeway, establishment of the full
build-out right-of-way corridor boundary and development of preliminary plans for an
interim two-lane highway. Phase I will provide a current cost opinion for all right-of-way
acquisitions required and both the four-lane and two-lane facilities.
The Iowa Department of Transportation has not included funding for the SW Arterial/Hwy
32 project in their Five-Year Transportation Plan. The City continues to dialogue with the
IDOT Commission regarding a RISE loan that could be used as the 20% match to allow
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access to the $36.18 million in federal funds now available and has met with key staff
members to emphasize the importance of the SW Arterial/Hwy 32 project to the State
and to the Dubuque area. This project continues to be a top priority.
Requested Action: The City requests any assistance that can be provided to help
convince the Iowa Department of Transportation Commission to commit funding toward
this vital project.
TIME 21
In December 2006, the Iowa Department of Transportation submitted a report to the
Iowa Legislature documenting the tremendous shortfall in road use tax funding that all
governments in Iowa are experiencing. In response to the report, the Legislature passed
legislation that implemented many of the report's recommendations including the
creation of a new fund called the Transportation Investment Moves the Economy in the
21st Century (TIME-21) Fund. This was an important first step in addressing the need
but now the Legislature is tasked with identifying a funding mechanism(s) to put at least
$200 million annually into the TIME-21 Fund. The same legislation that created the fund
also established aTIME-21 Legislative Interim Committee that has been assigned
responsibility for preparing a funding recommendation for the full Legislature by January
15, 2008. It is vital that the Legislature quickly act to adopt the committee's funding
recommendation so that the most critical needs on Iowa's roadway system can be
addressed.
Requested Action: Work with area legislators, regional partners, Governor Culver and
other leaders in the State to secure appropriations for TIME-21.
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 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.
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
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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.
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.
Office of Energy Independence and Iowa Power Fund
The City of Dubuque supports legislation that provides incentives for public and private
sector developments that achieve greater energy efficiency and energy independence.
This includes but would not be limited to tax credits to private individuals and developers
who restore and reuse aging structures and also for those who construct new building
that achieve energy efficient standards. Credits might also be available for the purchase
of hybrid automobiles or vehicles and for the installation of energy efficient products in
homes and businesses including geothermal, solar and other energy saving
technologies.
Requested action: Work with the legislators to draft and support legislation that would
create State Energy Tax Credits.
Sustainability Legislation
The City of Dubuque is taking a leadership role in sustainability initiatives and supports
the development of incentives which ensure the conservation of land, water and energy.
Requested action: Support state legislation that promotes green building development
practices. This would include practices that provide for resource and energy efficiency
and conservation, resource-efficient lot or site design and preparation, and improvement
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of indoor environmental quality through education of homeowners and business owners
on proper maintenance and operations.
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 3
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 help to 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, 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 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
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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 $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 employees purchasing or renting housing in the enterprise
zone could access funds for their housing needs.
Another reason for lack of employer participation in this program is that the legislation
requires the employer to choose between use of the tax credit for job training or for
providing a housing assistance program. Employers to date have chosen to use the
credit to pay for training new employees.
Requested action: The legislation should be amended to provide the credit for both job
training and employee housing assistance and to "pool" the funds. This will increase the
tax credit and increase interest in the program by employers.
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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.
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 25.48% of wages in fiscal year
2008. The City's contribution will be 18.75% of wages in fiscal year 2009. 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:
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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 seasonal 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 3 or 4 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 seasonal when hired. This puts a costly burden on the employer.
Requested action: Amend the unemployment law so that seasonal 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.
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 municipality's 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)
Civil Rights Enforcement
Civil rights agencies are the law enforcement tools for civil rights laws. The Iowa Civil
Rights 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. Apart of that partnership includes a contract arrangement I which local
commissions are reimbursed for processing cases that the State Commission would
have to process in the absence of a local commission. In addition, 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 on preventing discrimination. Increasing caseloads and outreach
obligations with minimal staff are impeding Commissions' abilities to protect the public
and sending 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 sufficiently reimburse local commissions for case processing
and reduction in case backlogs and delays and to fully support statewide education and
outreach efforts.
Airport Issues
AIR Fund
Designate at least $3 million a year for aviation projects and programs through the
establishment of the new Aviation and Iowa Resource or AIR fund.
Vertical Infrastructure Funding
Maintain Commercial Service Vertical Infrastructure funding of at least $1.5M and
General Aviation Vertical Infrastructure funding at $750,000 for landside development
projects at public-owned, public-use airports in Iowa. Consider use tax on aircraft sales
as revenue source.
State Aviation Fund
Beginning in FY 2008, revenues from aviation fuel taxes and aircraft registration fees will
be deposited into the State Aviation Fund. Revenues from use taxes collected from
aircraft sales must also be deposited into the State Aviation Fund to be reinvested into
Iowa's air transportation system.
Air Service Development
Iowa is underserved by commercial air carriers. Recommend establishing a grant
program using revenues from aviation fuel taxes already collected to assist smaller
commercial service airport in developing and implementing air service programs.
Airport Property Taxation
Public property is exempt from property taxes. Publicly-owned, public use airports are
pubic facilities. Airports need legislative clarification that airport property used for
agriculture and other (non-aviation uses) is not subject to property taxation. The main
purpose of such property is to maintain runway protection zones and compatible land
uses for the safety of aviation activities.
Eminent Domain
Publicly-owned airports are important public facilities. Airports and their sponsors need
to have the ability to use eminent domain when necessary for publicly-owned airport
projects that play a role in maintaining and increasing safety and in meeting the growing
air transportation demands.
Rebuild Iowa
Provide for continuation of Rebuild Iowa Infrastructure Fund appropriations for vertical
infrastructure projects at both commercial and general aviation airports.
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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.
Ambiant 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.
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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:
1. Department of Natural Resources
2. Department of Agriculture and Land Stewardship, Division of Soil Conservation
3. Department of Cultural Affairs, State Historical Society
4. 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 $10 million from
the general fund. Interest from the REAP account and receipts from the sale of natural
resource license plates add about $1.0 million to this appropriation for a total of $11
million a year.
REAP was originally authorized for $30 million per year for 10 years. In 1996, the state
legislature reduced the authorized maximum appropriation from $30 million to $20
million per year and extended the program's life to 2021. Last year the legislature
increased the REAP appropriation by $4.5 million to $15.5 million (a 40% increase).
Requested Acfion: Request that the Iowa Legislature increase REAP funding to $20
million next year, so for the 1 Sc time in its 18-year history REAP will be fully funded.
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
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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.
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