HomeMy WebLinkAbout12.16.2002COUNCIL WORK SESSION
December 16, 2002
3:30 p.m.
Mollenhoff Conference Room
Members present: Mayor Rooff, Berry, Welper, Greenwood, Clark, Jordan, Hurley, Getty.
Others present: Ted Tedesco, Susan Judkins, Konni Cawiezell, Don Shoultz, Bill Dotzler, Don
Redfern, Mayor Jon Crews.
Ted Tedesco, President of Iowa League of Cities Board of Directors, presented the following
League's 2003 Legislative priorities.
1. Call for a comprehensive review of Iowa's state and local tax structure and freeze the
residential rollback at no lower than 50 percent during the study. This includes
updating the sales tax distribution formula.
2. Support economic development initiatives that provide necessary tools for cities to
serve as economic engines for the State of Iowa. Protect Tax Increment Financing
(TIF) as an economic development tool. Support continued or renewed funding of
state development incentives including the Brownfield Redevelopment fund,
Resource Enhancement and Protection fund, historic preservation tax credits, Vision
Iowa and Community Attraction and Tourism programs, and others.
3. Pursue legislation that provides for a more equitable distribution of the Road Use Tax
and other transportation funding.
4. Support legislation to increase the public improvement bid threshold to a figure that
reasonably reflects current project costs.
5. Support legislation authorizing the use of impact fees for improvements related to
development.
6. Support legislation establishing cooperative planning and effective land management
practices.
7. Pursue legislation enabling funding of fire and emergency medical services and other
homeland security protections.
Discussion was heard on charging a fees for public safety services.
Susan Judkins reported that the League is not going into the session with expectations what is the
best tax structure. Ms. Judkins stated that an Iowa State University study shows Iowa cities
make do with less money per capita than the U.S. average, but gets a greater percentage of their
revenue from property tax. Many other states have a greater reliance on sales tax for local
government revenue than Iowa. Iowa has a heavier reliance on property.
Don Shoultz stated he does not see a possibility of changing the tax system at one time because
there are so many competing interests. Mr. Shoultz stated equalization orders have been
discussed but the legislature has not been able to make any changes. Mr. Shoultz recommended
that leaders call their legislators to let them know their city's feelings on equalization orders. Mr.
Shoultz stated he believes Iowa is in worse shape because the state used one time pays and there
are some areas the state borrowed from that must be paid back.
Mayor Rooff commented that the State does not supply the rollback figure early enough for
planning the budget.
Councilperson Welper stated he is concerned about Iowa's aging population and what cities can
do to keep or bring back the young people. Bill Dotzler responded that many areas have been
discussed concerning retaining or bringing in young adults, such as an affordable school system,
increased wages, technology, revenue enhancement and need to make sure cities have the
Council Work Session
December 16, 2002
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amenities young people want to stay in Iowa. Mr. Shoultz stated the state needs to look at
incentives for economic development, and we need to attract high tech and high paying jobs.
Don Redfern stated he feels this will be an extremely challenging legislature, and this is an
opportunity to do good policy and change some things. Mr. Redfern reported legislators like to
hear from cities as to what they would like the legislators to do and would like suggestions from
cities on how to treat rollbacks.
Mr. Dotzler stated that the business community needs to let legislators know how all of this
affects them. The state is moving backward in economic development and not seeing growth
because of other critical needs. There is no additional resources to fund economic growth. Mr.
Dotzler commented that some want to look at an across-the-board income tax cut, others want to
look at the sales tax. The legislators need to do trade offs to enhance revenues but not hurt
communities. Mr. Dotzler stated some people are hurt when the sales tax is increased and
property taxes are lowered.
Mr. Shoultz commented that legislators may look at increasing the cigarette tax. They also will
be looking at the business and industry credit. Other possibilities include eliminating the federal
deductible.
Ms. Judkins stated that legislators will be deciding on whether to keep the CAT grant. Mr.
Shoultz responded that quite a bit of the cigarette settlement funds the general fund. Mr. Dotzler
stated that the CAT grant has broad base support on both sides of the aisle and urban and rural
support. Mr. Dotzler stated the CAT grant is a great program, and the legislators need to find
funds for it.
Councilperson Greenwood stated there is duplication of services provided by cities and states.
He also would like certificates of need in place, such as no grant funds would be awarded to
neighboring cities with infrastructure in place. Mr. Redfern responded that the initiative needs to
come from cities and counties to combine services. Mr. Shoultz stated that the discussion on
consolidation of services needs to come from cities and counties.
The meeting adjourned at 4:45 p.m.
Nancy Eckert
City Clerk