HomeMy WebLinkAbout1987-06-02 Info PacketCity of Iowa City
MEMORANDUM -
DATE: May 29, 1987
TO: City Council
FROM: City Manager
RE: Recommendations from Citizens' Committee on City Revenue
Attached are a number of documents representing the opinions/recommendations
of the Citizens' Committee. Please note that the Committee was divided with
respect to its final recommendation.
The Citizens' Committee has recommended that time be made available at your
Monday, June 15, informal meeting to discuss the recommendations.
cc: Rosemary Vitosh
Dale Helling
Citizens' Committee on City Revenue
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TO: Iowa City City Council
RE: Revenue Options
In order to provide the approximate ;1,000,000.00 necessary in fiscal
year 1989 to maintain the basic package of services provided by the City, the
maintenance of which services is of paramount importance to the undersigned
and to the majority of the remainder of the committee, the undersigned
recommend to the City Council that the Council put to the voters the option to
levy a local sales tax at the rate of 1%.
The reasons for this position are:
1) The sales tax can provide additional revenues derived from a broader
base of the users of city services than property taxes can provide.
2) The sales tax can provide, in addition to meeting current revenue
requirements, si nificant ro er tax relief (an estimated ;1,000,000.00 in
relief in fiscal
year 1989 or a evy .
r 3) By putting the sales tax option on the ballot, Council can allow the
voters to voice approval of the current service package and to tax themselves
to pay for it.
4) Reliance on increasing property taxes, even on a temporary basis, is
F unwise because:
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a)The maximum levies necessary to maintain existing service levels leave
no financial flexibility to deal with emergencies or improve cash reserve
positions.
b) Fixed-income taxpayers, such as the elderly, as well as first-time
home buyers, are adversely affected by increased property taxes.
c) Property taxes have been increased recently for the swimming pool
project.
d) Property taxation is so heavily regulated by the state as to be not
entirely reliable as a long term planning device, with no immediate
ability to alter this regulatory scheme.
e) Sales taxes are more responsive to economic changes than are property
j taxes.
5) If property taxes are solely relied upon to provide needed revenue,
Political pressures on the Council will serve to reduce services, rather than
i increase expenditures, which service deductions will take place at the expense
of those who cannot afford to purchase replacement services.
We further recommend increasing the hotel -motel tax by 2%.
Res ectful /
` G/�2 )y submitted, a�/
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May 27, 1987
TO: City Council
FROM: Ten Members of the Citizens Committee, representing the
majority view of the committee
REGARDING: Alternative strategies to balance the city budget:
Property tax increase and other recommendations
1. We believe the present package of revenue options is
insufficient for Iowa cities, given the cutbacks in State and
Federal aid. We believe more options should be created, such
as local income tax, a local excise tax on tobacco and alcohol,
or a statewide income tax or sales tax redistribution.
2. In order to maintain quality city services and assuming
that present revenues will not cover expenses, we recommend
that the city temporarily increase property taxes above the
present 6 percent policy. if this were done for no more than
two years, a property tax revenue base would be established
that would enable the city to return to the no more than 6
percent increase policy. (See Attachment A for the reasons for
our support of the property tax alternative.) We also recom-
mend that the hotel -motel tax be increased.
3. We recommend that the supplemental recommendations
outlined on Attachment B be explored by the City Council and
staff.
Respectfully submitted,
Clayton Ringgenberg
Anne Rawland
Richard Stevenson
Jesse Singerman
David Hughes
Thomas Goedkin
Ernest Lehman
Mace Braverman
David Leshtz
Peter Fisher
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Attachment A
REASONS FOR SUPPORTING THE pROpERTy TAX ALTERNATIVE
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1. Fairness
- Most research has concluded that the property tax, while
it is regressive among lower to middle income households
(taking a larger proportion of incomethe lower one's
income), is probably progressive at higher income levels.
- Regressivity among low-income elderly and disabled
households is reduced or eliminated in Iowa through the
elderly and disabled property tax relief program.
- Owners of commercial property (including rental housing)
shift some or all of the property tax onto renters and
customers by charging higher prices or rent to cover their
tax bills. Thus University students and non-resident
shoppers pay a share of property taxes indirectly, and help
finance the city services that benefit them.
- Most tax -supported city services are, at least in part,
services to property--e.g., police and fire protection,
streets.
fromthese0services but doenot mpt contribute,�owithrtheenefit
exception of the University fire service contract.)
- Ownership of property, while not well related to current
income for some households, is a good indicator of lo
ability to pay, ng -run
2. Net Burden on Iowa CityResidents.
- The property tax, unlike the sales tax, is fully
deductible on state and Federal income tax returns. For
example, a $100 property tax increase for someone in the 286
Federal tax bracket and the 106 state bracket really costs
only about $68. (This benefits renters as well, since
landlords deduct property taxes and thus have less to pass
on.)
- Property taxes on industrial and utility property (about
126 of the tax base) are probably largely paid by owners and
customers residing outside Iowa City, who would be
beneficiaries of sales -tax financed property tax relief.
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3. Effects on Economic Decisions.
- There is no conclusive evidence that property tax rates
have a significant effect on location decisions of
businesses.
- The property tax would not affect retail sales patterns.
4. Responsiveness and Stability.
Partly because of the time lag between reassessments and tax
collections, the property tax is less responsive to changes
in the economy (both upswings and downswings) than sales or
income taxes. This makes the property tax more stable and
predictable, which in turn means that the city can avoid
taxing residents in order to build a larger cash reserve
(such as would be needed with a sales tax).
5. Revenue Adequacy.
- currently there is about a $2.5 million cushion remaining
in the property tax (i.e., additional revenues obtainable by
raising the general fund and transit levies to the maximum,
shifting all employee benefits out of the general fund, and
adopting an emergency levy.)
- Budget projections indicate that if the 68 policy were
relaxed for fiscal 1989 and revenues increased to cover the
projected $923,000 deficit, tax increases for the following
three years could be held to around 4% on average; the
general fund levy would remain below $8.00 per thousand and
the tax cushion would probably remain in excess of $1.5
million (assuming no further cuts in state and federal aid
programs).
6. Government Accountability.
- Taxpayers are very aware of how much they pay in property
taxes (unlike the sales tax); the property tax hurts. This
tends to force local government.to scrutinize tax increases
more carefully and search more diligently for ways to
economize and operate more efficiently.
- The property tax rate can be raised or lowered (within the
state mandated ceiling) at the discretion of the council; no
referendum is required to change the rate.
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Attachment
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POSSIBLE SUPPLEMENTAL RECOMMENDATIONS
A. MAYOR AND COUNCIL APPOINT A BLUE RIBBON ECONOMY COMMITTEE
[ TO REVIEW ALL CITY OPERATIONS
B. COUNTY AND CITY GOVERNMENTS APPOINT A CITIZENS GROUP TO
MAKE SUGGESTIONS FOR ELIMINATING DUPLICATION OF GOVERNMEN-
TAL SERVICES IN THE JOHNSON COUNTY AREA
C. MAYOR AND COUNCIL APPOINT A SPECIAL CITIZENS' COMMITTEE TO
REVIEW BUS FINANCING AND OPERATIONS
D. HAVE A CITIZENS' TASK FORCE MAKE RECOMMENDATIONS FOR POL-
ICE/FIRE COORDINATION
E. STUDY THE POSSIBILITY OF ADDITIONAL CHARGES FOR SERVICES TO
PROPERTY EXEMPT FROM THE PROPERTY TAX
F. FIND WAYS TO SPREAD OUT DEBT SERVICE COSTS TO REDUCE THE
PROPERTY TAXES LEVIED FOR THIS PURPOSE
G. EXPLORE THE COMMUNITY FUND CONCEPT:
ARE MADE BY PRIVATE DONORS FOR COMMUNITYOFACILITIEST(CAPI-
TAL PROJECTS)
H. EXPLORE USING MORE ENTERPRISE AND OTHER NONTAX REVENUES FOR
GENERAL FUND PURPOSES
2. IF THE SCHOOL DISTRICT RECEIVES SUBSTANTIAL ADDITIONAL
STATE AID FROM THE 1987 LEGISLATURE, GET A COMMITMENT THAT
SCHOOL TAXES WILL NOT INCREASE
J. SET UP A PROGRAM TO LOBBY STATE AND FEDERAL GOVERNMENTS TO
ALLOW MUNICIPALITIES MORE COMPREHENSIVE AND CREATIVE TOOLS
FOR GAINING REVENUE
K. CITY GOVERNMENT EXPLORE WAYS TO REDUCE PROPERTY TAX SUB-
o.
SIDIES TO THE AIRPORT
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THE NEED FOR BETTER ALTERNATIVES
The Citizens Committee on City Revenues finds each of the alternatives
available to us --property tax increases, and local option sales and
vehicle taxes --to be undesirable in many respects. We urge the State
Legislature to reevaluate the entire issue of municipal home rule (or
lack of it) with respect to taxation and to grant the citizens of this
State greater flexibility to deal with budget problems at the local level.
In addition, we urge consideration of the following additional local
option taxes:
(1) A surcharge on the state income tax liability of residents.
(2) A local tax on earnings of all those deriving income within
a city.
(3) A combination of the first two, with the earnings tax deducted
from the surcharge.
(4) A local motor fuel tax.
(5) A local excise tax on tobacco and alcohol.
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CITY OF IOWA
CITY
CHIC CENTER 410 E. WASHINGTON ST. IOWA CITY, IOWA 52240 (319) 356-50100
L
29 May 1987
The Honorable Mayor William Ambrisco and
Members of the City Council -
Civic Center
410 E. Washington Street
Iowa City, Iowa 52240
Re: Letter of Resignation
Dear Mr. Mayor and Members of the City Council:
This is to notify you that I have accepted a position in
private law practice with the firm of Hayek, Hayek, Hayek
and Holland. Accordingly, I shall be resigning my position
of Assistant City Attorney, effective the end of the day
on duly 3, 1987.
My employment with the City has been an enjoyable and
rewarding experience, and I leave with fond memories.
Sincerely yours,
Vf
vid Evid E, Bro
Assistant Ci Attorney
cc: Terrence Timmins, City Attorney
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City of Iowa City
MEMORANDUM
DATE: May 27, 1987
TO: Mayor and City Council
FROM: Marian K. Karr, City Clerk
RE: Council Chambers Communication System
Bid proposals were submitted by three vendors for the Chamber
Communication System. Low bid was $10,800 (see attached memo).
The FY88 budget includes $7500 for this project. It is
recommended that the remaining $3300 be taken from the contin-
gency fund. Unless there are further questions we intend to
proceed with acquisition and installation of the equipment.
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RFP 188-2 CHAMBER'S COMMUNICATION SYSTEM - RECOMMENDATION
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Proposals for the Chamber's communications system were received from the
following three firms:
Company Proposed System Cost
Woodburn Sound Service, Iowa City $10,715.78
Communications Engineering, Cedar Rapids $13,265.77
D.B. Acoustics, Marion $14,626.00
Proposals were evaluated by City staff members from the Clerk's office
on,
Cable TV, and Purchasing, as well as Larry Thoen from U of I AV Center.
Based upthe evaluation, an award is recommended to Woodburn Sound
Service of Iowa City. The project consists of a complete new communica-
tion system for the Council Chambers, including all equipment, installa-
tion, training and one year warranty. The system includes state of the art
sound amplification, mixing, and equalization equipment as well as new
cabling and media hookups, to produce much higher quality amplified,
recorded and broadcast sound.
I. The microphones are uni-directional, low profile gooseneck type, mounted
4 on the podium and council/staff tables. The system is voice activated so
that normally only one mic is on at a time (unless two or more persons
Er speak at the same time). Each mic includes a momentary mute switch to
allow private conversations when necessary,
�! n The audience podium mic and a staff mic will each have a jack for plugging
in a separate mic. This will enable Mayor or Councilmembers to make
ppresentations in the
ersonstospeak without ei
tstanding Council,ont of the
podi m, and staffmmbers/public
to speak during presentations.
Speakers will be located in the Council staff area (3), audience area (6),
and lobby (1, with a volume control switch within easy reach).
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The tape deck will be mounted permanently to the Clerk's table. The auto
reversing feature will enable the Clerk to record 90 minutes without
stopping to change a tape.
An option to amplify and record audience responses from an where in the
Chambers ($1500 to install 4 mics above the audience area was evaluated
but is not recommended. Such mics would need to be omni -directional to
pick up a voice from anywhere in the roam, and thus would amplify/record
everything in the Chambers, including air handlers and crowd noise.
Upon Council approval, an order will be placed to Woodburn Sound Service.
Julyl31,onof 1987.theWoodburndwillmunication sch schedule andtem is coordi atectinstalatiionatand
training with the City Clerk, to prevent any unanticipated or undue inter-
ruption of the Council Chambers or its operations.
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RECEIVED MAY 131987
Bicyclists of Iowa City, Inc.
POST OFFICE BOX 846 0
IOWA CITY, IOWA 52244 n�
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May 10, 1987
City Manager
City -of Iowa City
410 East Washington
Iowa City, IA 52240
Dear Sir,
On behalf of The Bicyclists of Iowa City, I would like to thank you for the use of signs, barricades
and the race permit for the Tenth Annual Old Capitol Criterium, on Sunday, April 26, 1987.
The Old Capitol Criterium is a testimonial of the exploding popularity of bicycle racing as a
sport and a spectator event. The weather was beautiful for this year's race, consequently
attracting an estimated 7,000 spectators throughout the day. We had approximately 300
United Slates Cycling Federation racers and an Increase in citizen and kiddy participation.
I feel that much of our increase in participants and spectators is due to help such as you gave us
this year. One of the nicest things about such an event is working with people such as you.
Thanks again for your help in making this event such a great success
Sincerely
0--
tT I 17a—,
OloriaA. Marchmen
Publicity Director for BIC
1109 Tower Court
Iowa City, IA 52240
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JUNE 1987
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-Fire Truck Bid
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Council (Chambers
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7:30PM-Formal P&Z
7:30PM-Informal
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8AM-Magistrate
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11:30AM-Em loyee
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7:30PM-Resources
Luncheon (Chamb)
'30PM-Historic
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3:30PM-Committee o
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4PM-Design Review
Colmnittee (Public
Comm (Sr. Center)
7:30PM-Informal
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7:30PM-Formal P&Z
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7:OOPM-Human Right
by parks tour
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4PM-Library Board
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Johnson County Council of Governments
410EVvbshingtonR bvnCity bvvo52240
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jDate: May 12, 1987
To: City Manager and City Council, City of Iowa City
From: Jeff Davidson, Transportation Planner
Re: Report Transmittal
Attached is a copy of the 1987 Iowa City Transit On -Board Ridership Survey
Final Report. This study was conducted by JCCOG in April at the request
of Iowa City Transit. The report contains general information pertaining
to Iowa City Transit riders which will assist the Transit Department in
directing their marketing efforts.
The survey will be given again next year so that we can assess any changes
in ridership following the service reductions which will be implemented
July 1.
Feel free to contact me at X5252 if you have any questions or comments
regarding this report.
tpl/7
cc: Don Schmeiser
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Iowa City Transit
On—Board Ridership Survey
Prepared by the Johnson County Council of Governments
March 1981
Jeff Kevin Davidson,
L DoyleAs tr.aTransportation nsportation aPlanner
Steve Beningo, Planning Intern
Mimi Hartwell, Planning Intern
Steve Noble, Planning Intern
Mike Singer, Planning Intern
and
John Lundell, Iowa City Transit Manager
Preparation of this report was financed in part through a Federal grant by
the Urban Mass Transportation Administration under the provision of Sec-
tion 8 of the UMT Act of 1964, as amended.
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Iowa City Transit
On—Board Ridership Survey
Prepared by the Johnson County Council of Governments
March 1981
Jeff Kevin Davidson,
L DoyleAs tr.aTransportation nsportation aPlanner
Steve Beningo, Planning Intern
Mimi Hartwell, Planning Intern
Steve Noble, Planning Intern
Mike Singer, Planning Intern
and
John Lundell, Iowa City Transit Manager
Preparation of this report was financed in part through a Federal grant by
the Urban Mass Transportation Administration under the provision of Sec-
tion 8 of the UMT Act of 1964, as amended.
TABLE OF CONTENTS:
Introduction . . . . . . . . . . . . . . . . . . . . I
Survey Design and Sampling Methodology. . . . . . . 3
Results . . . . . . . . . . . . . . . . . . . . . . 4
Summary . . . . . . . . . . . . . . . . . . . . . . 14
Appendix . . . . . . . . . . . . . . . . . . . . . . 15
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TABLE OF CONTENTS:
Introduction . . . . . . . . . . . . . . . . . . . . I
Survey Design and Sampling Methodology. . . . . . . 3
Results . . . . . . . . . . . . . . . . . . . . . . 4
Summary . . . . . . . . . . . . . . . . . . . . . . 14
Appendix . . . . . . . . . . . . . . . . . . . . . . 15
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INTRODUCTION:
Iowa City Transit provides fixed route transit service on 14 routes Monday
through Saturday, from 6 a.m. to 10:30 p.m. On most routes Monday through
Friday service is at half-hour headways and at hourly headways on Saturday.
Night service is hourly Monday through Saturday. The base fare is 50Q and an
unlimited ride monthly pass is available for $18.
For the past several years Iowa City Transit has been experiencing annual
operating deficits due to declining ridership and increasing operating costs.
This resulted in a decision by the Iowa City City Council in February 1987 to
implement the following service reductions:
1. Cut Saturday night service after 7:00.
2. Reduce mid-day service 50%.
3. Reduce night service 50%.
4. Reduce Seventh Avenue route service 50%.
5. Combine North Dubuque and Manville Heights routes.
6. Increase price of monthly pass and Saturday fare.
The intention of this survey is two -fold. First, it is desired to collect
general information pertaining to the characteristics of Iowa City Transit
users and to learn the perceptions users have of the system. Accordingly, a
questionnaire (Figure 1) was developed to address the following specific
points:
1. How often do people ride the bus each week?
2. For what purpose do they ride?
3. Of what significance is transit to CBD shopping activity?
4. How do people pay their fare?
5. What is the main reason people ride Iowa City Transit?
6. What are riders' perceptions of Iowa City Transit?
7. What is the age and income distribution of persons who ride Iowa City
Transit?
The second purpose of the survey is to record "before" information prior to
the service reductions being implemented on July 1, 1987. This will allow the
survey to be given again next year and a comparison made to assess the impacts
of the service reductions.
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RDiowa city transit
On -Board Survey 1,987
Iowa City Transit is conducting a survey of bus riders. Please take a few minutes
to complete this survey, and place it in the containers provided at the front and
rear of the bus as you leave. If you have previously completed this survey, you
need not complete another one. Thank you for your cooperation.
I. How often do you ride the bus? (One-way trips)
_Once a week _2-4 5-7
_8-10 10+
2. (a) What is the primary purpose of your trip? (Check one)
Work Shopping Recreation
School _Medical =Other
(b) If you answered "Shopping" in part (a) how much do
while shopping today? you expect to spend
_Less than $10 _S10-$49
_$50-514 _$75+
(c) If you answered that your primary trip purpose is other than shopping, but
also expect to do some shoppingtoday, how much do you expect to spend?
_Less than S10 _$10-549
_550-514 _575+
3. Now did you pay your fare?
Cash Monthly pass
_Transfer _Strip Ticket --Other
4. What is your main reason for choosing to ride the bus? (Check one)
_I have no other means of transportation.
_I feel it is more economical to ride the bus.
Parking is a problem.
_I prefer not to cope with traffic.
I think the bus is better for the environment.
The bus is more convenient.
=Other reasons
5. Now do you rate the following aspects of Iowa City Transit?
Very Very
Good Good Fair Poor Poor
a. Frequency of buses
b. Schedule reliability — — ---
c. Amount of fare — —
d. Walking distance to — — —
bus stop
e. Driver courtesy — —
6. What is your age?
Under 18 18-25 26-60 -60+
7. What is your approximate family income?
__Under $10,000 -_SIO,000-519,999 _520,000-539,999
8. Additional Comments; _ $40,000+
%of
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SURVEY DESIGN & SAMPLING METHODOLOGY
71
Sampling theory is based on the concept that to assess the characteristics of
the entire population. A
a given population, it is not necessary to survey
tatistically valid manner, will provide an accurate
sample, selected in a s
representatinn of the population as a whole.
The population to be surveyed for this project was pmrso Thehsample IsizeowaCwas
6:00
Transit during the week from 6:00 a.m. to p.
number of weekday transit trips, and separated into
-
developed from the total
routes by using the actual average daily ridership by route pair.
the various
A 20% sample was selected and yielded 62 trips to be surveyed.
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mber of trips to be surveyed during peak periods and off-peak periods
The nui
transit trips during each of
R u+
was determined by using the actual number of
70% and 30% off -peak. This resulted in 43 peak period
be
-�
these periods: peak
trips and 19 off peak period trips to be surveyed. The number of trips to
based on the route pair's
surveyed on each route pair was then calculated
daily ridership. Peak period surveying was done en -
¢
percentage of average
in the AM peak so that the data reflected persons traveling into the
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tirely i
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CBD.
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The survey was conducted by JCCOG staff and Iowa City Transit operators on
19, 1987. Each passenger was given a
Wednesday, March 18, and Thursday, March
boarding the bus and was asked to complete it while on
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questionnaire when
board. The questionnaires were collected at the end of each trip and coded
trip. A total of 1,420 ques-
with the route name and departure time of the
distributed during the two days. The number returned was
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tionnaires were
1,340,a response rate of 94.4%.
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Q-1 How often do you ride the bus
The responses to this question indicate most users of Iowa City Transit ride
the system on a regular basis. 82% of the respondents use Iowa City Transit
at least five times a week.
Specific information was calculated relating how often persons who use monthly
Passes
eride he bus. s persons of the using
naeedmonthly passes
eatleasteight times week. 97%ridet lestietimesperwk.
Specific information was calculated relating frequency of usage and income
level. The analysis shows nearlyhalf the respondents ride ICT at least five
times per week and have a family income of less than $20,000/year. 34% ride
at least five times a week and have a family income of $20,000/year or more.
Specific information was calculated relating frequency of usage and age. 46%
of the persons responding indicated they ride at least five times a week and
are between the ages of 26 and 60. 25% ride at least five times a week and are
between the ages of 18 and 25.
The crosstabulation tables containing the above information are included in
the appendix.
Overall Response
Freq.
%
Once/week
72
5
2-4/week
167
13
5-7/week
292
22
8-10/week
361
27
10+/week
133
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1-00—
The responses to this question indicate most users of Iowa City Transit ride
the system on a regular basis. 82% of the respondents use Iowa City Transit
at least five times a week.
Specific information was calculated relating how often persons who use monthly
Passes
eride he bus. s persons of the using
naeedmonthly passes
eatleasteight times week. 97%ridet lestietimesperwk.
Specific information was calculated relating frequency of usage and income
level. The analysis shows nearlyhalf the respondents ride ICT at least five
times per week and have a family income of less than $20,000/year. 34% ride
at least five times a week and have a family income of $20,000/year or more.
Specific information was calculated relating frequency of usage and age. 46%
of the persons responding indicated they ride at least five times a week and
are between the ages of 26 and 60. 25% ride at least five times a week and are
between the ages of 18 and 25.
The crosstabulation tables containing the above information are included in
the appendix.
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0-2 What is the 'PrimaryRESULTS;
purpose of Your trip?
Overall
Freq. %
Work
97
School 592 52
Shopping 26 44
Medical 2 2
Recreation 13 <1
Other 7 1
1- MI
TN
Response to this question shows overwhelmingly
City Transit to travel to work and to school. When controlled for age the data
indicates most "school" respondents are of college ageso(18-25) ns are using Iowa
"Work" respondents are between 26 and 60. and most
Of the 2% of the respondents indicating shopping as their primary trip pur-
pose, 60% said they would be spending between $10 and $49, 32% said they
would spend less than $10. Over half of the survey respondents (54%) indi-
cated that shopping was not their primary trip purpose, but that they would be
doing some shopping during the day. Most (72%) said they would spend less
than $10. The shopping trends were the same when the data were controlled for
persons going to work and for persons going to school (see appendix for
crosstabulation tables).
The data for persons travelling to work were also controlled for income and
indicated a fairly even distribution across the income scale:
Income Level of Persons I
Using ICT to Travel to Work
riot p
Freq.
%
Under $10,000
$10-$19,999
109
17
$20-39,999
177
240
27
$40,000+
132
36
3'd'&'
TW
riot p
Q-3 How did You a RESULT
Y pay Your fare?
Overall Response
Freq. %
Cash 584 44
Monthly52
Transfer
r 615 1
Strip ticket 29 2
Other g
334 1
1
ebb
The responses indicate a majority (52%) of riders using a monthly pass to pay
their fare. 96% of the respondents used either a monthly pass or cash to pay
their fare.
The "other" responses consisted of eight persons using an elderly or handi-
capped pass and one Bus & Shop validation,
rot a
RESULTS:
Q-4 What is your main reason for riding the bus?
Overall Response
Freq. %
I have no other means of transportation 467 27
Parking is a problem 398 23
I feel it is more economical to ride the bus 341 19
The bus is more convenient 320 18
The bus is better for the environment 92 5
I prefer not to cope with traffic 83 5
Other 46 3
TM To
The existence of transit -dependent persons is indicated here, with 27% of the
survey respondents indicating they have no other means of transportation
besides ICT. Financial considerations, convenience, and parking problems were
the other primary reasons listed for using ICT. Traffic and environmental
considerations were of less importance.
The total number of responses is greater than the number of persons surveyed
because some respondents checked more than one item. Although this may over-
represent the frequency of one response versus another, it still indicates the
primary reasons persons are utilizing ICT.
Q-5 How do you rate the following aspects of CT?
The following responses indicate a favorable user perception of Iowa City
Transit.
a. Frequency of Buses
Freq. %
Very good 724 55
Good 461 35
Fair 117 g
Poor lg
Very poor 5 <1
1,326 100
90% of the respondents indicated the frequency (headway) of ICT buses is good
or very good.
b. Schedule Reliabilit
Freq. %
Very good 788 60
Good 441 33
Fair 82 6
Poor 10 1
Very poor 2 <1
1,323 100
931 of the respondents indicated ICT's schedule reliability is good or very
good.
c. Amount f Fere
Freq. %
Very good 443 34
Good 537 41
Fair 291 22
Poor 39
Very poor 7 3
-i <i
1
75% of the respondents indicated the fare level is good or very good.
d. Walking Distance to Bus sto
Freq. %
Very good 833 63
Good 398 30
Fair 68 5
Poor 14 1
Very poor 6 1
1,319 100
93% of the respondents indicated the distance they are required to walk to the
bus stop is not unreasonable (good or very good).
e. Driver Court
Freq, %
Very good 618 47
Good 517 40
Fair 144 11
Poor 25 2
Very poor 16 <1
�b
87% of the respondents indicated driver courtesy is good or very good.
i..j
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f
1
c. Amount f Fere
Freq. %
Very good 443 34
Good 537 41
Fair 291 22
Poor 39
Very poor 7 3
-i <i
1
75% of the respondents indicated the fare level is good or very good.
d. Walking Distance to Bus sto
Freq. %
Very good 833 63
Good 398 30
Fair 68 5
Poor 14 1
Very poor 6 1
1,319 100
93% of the respondents indicated the distance they are required to walk to the
bus stop is not unreasonable (good or very good).
e. Driver Court
Freq, %
Very good 618 47
Good 517 40
Fair 144 11
Poor 25 2
Very poor 16 <1
�b
87% of the respondents indicated driver courtesy is good or very good.
RESULTS:
Q-6 What is your age?
Overall Response
Freq, %
Under 18 123 9
18-25 418 31
26-60 745 56
60+ TM48 4
I'OU'
The majority of persons utilizing Iowa City Transit are between the ages of 26
and 60. Only 9% are under age 18.
'role
.Y'
-77
-,
k
RESULTS:
Q-7 Q-7 What is your approximate family income?
f Overall Response
R
Fri_ %
Under $10,000 404
$10,000-$19,999 314 32 I
$40$20,000+$39,999 330 26
201 16
1249 100
There is
tive
broad
ICT. 57%ahaveafami y
incomes sectrumo.
less hanof n$20,000vper year9 amonPersons utilizing
Specific information was calculated relating income level to transit depend-
ency (those who answered "I have no other means of transportation" to question
A4). -The information indicates transit dependent
lower end of the income scale. 44% of transit dependent persons have family
incomes of less than $10,000. Persons tend toward the
a! Income Levels of Transit Dependent Persons
I
Freq. %
Under $10,000 190
$10,000-$19,999$20 97 44
23
$40,000+$39,999 78 18
67 15
432 100
k
F Specific information was calculated relating income level to elderly persons
f who use Iowa City Transit. The responses indicate a broad range of income
-' levels for persons over 60 years of age who use ICT.
-� Income Levels of Respondents at least 60 Years of Age
Freq. %
Under $10,000 11
$10,000-$19,999 11 26
$20,000-$39,999 16 26
j $40,000+ 37
V 11
43
100
I
.P'
r�
I�
i I SURVEY COMMENTS
Questionnaire respondents were given the opportunity to comment on any aspect
of the system. 488 comments were received, and all with a frequency of at
least three are listed following. Nearly half of the comments were either
that the proposed service cuts should not be implemented, or that Iowa City
Transit is a very good system. Also notable are certain comments which had a
low response frequency. For example, only three persons commented that more
bus shelters are needed.
I. The proposed service cuts should not be
implemented.
2. The bus system is very good.
3. Would support increased fares.
4. If service reductions are implemented I will not
ride the bus.
5. Bus service should be increased, not reduced.
6. Bus drivers are rude.
7. Buses should operate on Sundays.
8. Bus drivers are courteous.
9. Bus drivers are reckless.
10. Hourly service on Saturday is an inconvenience.
11. Night service should operate later/more frequently.
12. Transit is a needed/essential public service.
13. Fares should not be raised.
14. Fares should be reduced.
15. The proposed service cuts are justified,
16. Buses do not run on schedule.
17. Need more advertising about the benefits of transit
Frequency
114
100
29
26
21
20
18
17
16
15
15
15
13
6
6
6
5
M'1
16. Depend an bus service to get to work.
19. Buses are too crowded.
20. Iowa City Transit should combine with C.4NBl1S
21. Older people need the bus.
22. The bus is better for the environment.
23. Need more bus shelters.
4
4
3
3
3
3
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16. Depend an bus service to get to work.
19. Buses are too crowded.
20. Iowa City Transit should combine with C.4NBl1S
21. Older people need the bus.
22. The bus is better for the environment.
23. Need more bus shelters.
4
4
3
3
3
3
I�
i
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P,
I
"i
1
i
SUMMARY:
* Most riders are regular users: 82% of the people who ride Iowa City Transit
use the system at least five times a week.
* The most predominant use of Iowa City Transit is for persons going to work
or to school.
* Most persons using ICT to go to school are college age.
* Very few persons use Iowa City Transit when their primary trip purpose is to
go shopping, but over half of ICT riders do some shopping as a secondary
activity.
* There is a wide range of income levels for persons using ICT, although over
half have family incomes of less than $20,000 per year.
* Persons using ICT to travel to work, and persons over age 60 tend to be in
the middle income categories (family income 510,000-540,000).
* 27% of the ICT riders are "transit dependent," i.e., they have no other
means of transportation besides Iowa City Transit. Nearly half of the per-
sons indicating they are transit dependent have family incomes of $10,000
per year or less.
* Most persons pay their fare with cash (44%) or a monthly pass (52%).
* Environmental and traffic concerns are not primary reasons that people use
ICT.
* The user perception of ICT with regard to frequency of bus service, schedule
reliability, amount of fare, walking distance to bus stops, and driver
courtesy is quite favorable.
* Most people who ride ICT (87%) are between age 18 and 60. School children
and retired persons make up a small percentage.
* When given the opportunity to comment on any aspect of ICT, most persons
responded that it is a good system and service should not be reduced.
APPENDIX:
� 15
SA
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If�II
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APPENDIX:
� 15
Crosstabulation Tables
Frequency of Use x Use Monthly Pass
---Use Monthly Pass---
Freq. %
Once/week
1
r
L.J
2-4
17
2
5-7
102
S
8-10
207
li
10+
TO -F57-'6
368
k
9-5100
i
34
12
�r
70
43
65
26
8 10
91
1
57
10+
170
183 lei
60
f
n
�n
g IJ
P
is �J
u
p i
1-.
�I
Crosstabulation Tables
Frequency of Use x Use Monthly Pass
---Use Monthly Pass---
Freq. %
Once/week
1
<1
2-4
17
2
5-7
102
15
8-10
207
30
10+
TO -F57-'6
368
53
9-5100
5224
rot m
Frequency of Use x Income Level
---Income---
<E10,000
$10-19,999 $20-39,999
E40,000+
Once/Wk.
20
11
2-4
5224
34
12
5-7
70
43
65
26
8 10
91
69
57
10+
170
183 lei
60
rot m
Frequency of Use x Age
---A9e---
<18
18_25 26=60
60+
Once/Wk.
4
29
2-4
10
36
55
3
5-7
8-10
32
22
90
83 164
12
12
10+
55
IA7 232
3
rot m
Trip Purpose "Work" x Also Will Shop
Freq.
%
Under $10
247
67
$10-549
I
31
$50-574
8
r;
$75+
1
<1
Total
371
100
p.
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1
Trip Purpose "Work" x Also Will Shop
Trip Purpose "School" x Also Will Sho
Freq.
%
Under $10
247
67
$10-549
115
31
$50-574
8
2
$75+
1
<1
Total
371
100
Trip Purpose "School" x Also Will Sho
Trip Purpose "Work" x Age
F_ rte_
%
Under $10
265
78
$10-549
75
22
$50-574
1
<1
$75+
0
0
To -Ma
341
100
Trip Purpose "Work" x Age
Trip Purpose "School" x Age
Freq.
%
Under 18
114
19
18-25
292
50
26-60
185
31
60+
0
0
ri aT
1zrr
TM
Trip Purpose "School" x Age
Freq.
%
Under 18
5
1
18-25
110
16
26-60
547
79
60+
32
4
Total
694
100
i
City o4 Iowa City
MEMORANDUM
DATE: May 11, 1987
TO: Citizens' Committee on City Revenue
FROM: City Manager
RE: Tax Policy Options
These appear to be the basic tax policy options available. The Subcommittee
directed that such a summary be prepared for discussion. Please note that
the general goal was to raise at least $1,000,000 a year in new revenue
through current legislation available to municipalities, as well as provide
property tax relief.
Attached is a report prepared by Clayton Ringgenberg for the Subcommittee.
cc: Rosemary Vitosh
Dale Helling
City Council
R��h3
J. )A,
i
1
i
City o4 Iowa City
MEMORANDUM
DATE: May 11, 1987
TO: Citizens' Committee on City Revenue
FROM: City Manager
RE: Tax Policy Options
These appear to be the basic tax policy options available. The Subcommittee
directed that such a summary be prepared for discussion. Please note that
the general goal was to raise at least $1,000,000 a year in new revenue
through current legislation available to municipalities, as well as provide
property tax relief.
Attached is a report prepared by Clayton Ringgenberg for the Subcommittee.
cc: Rosemary Vitosh
Dale Helling
City Council
R��h3
J. )A,
.o•
i
TAX POLICY OPTIONS
Sales Tax 1/4% _ $500,000 annual revenue
1 1/2% _ $1,000,000 annual revenue
3/4% _ $1,500,000 annual revenue
Y 1% _ $2,000,000 annual revenue
* Vehicle Tax $ 5
= $200,000 annual revenue
$10
= $400,000 annual revenue
$15
- $600,000 annual revenue
*Very difficult revenue to predict
Hotel Tax 14
= $42,000 annual revenue
24
$84,000 annual revenue
(currently 54, maximum 74)
Property Tax Each 104 = $100,000 in annual revenue
(currently $7,10, maximum $8.10)
1. 1% SALES TAX ($2,000,000)
meets (exceeds) revenue shortfall projected for basic service
continuation.
allows for property tax relief of approximately $1,000,000.
allows for consideration of service restoration, expansion and/or
related amendments.
2. 3/4% SALES TAX ($1,500,000)
meets (exceeds) revenue shortfall.
allows for property tax relief of approximately $500,000.
allows for some service restoration, expansion and/or related
amendments.
W
3. 1/2% SALES TAX ($1,000,000)
meets revenue shortfall.
no property tax relief.
no service adjustment.
State law does require property tax relief as part of referendum
proposal.
4. 1/4% SALES TAX ($500,000)
does not meet shortfall or property tax relief.
5. 1/4% SALES TAX ($500,000) PLUS $13.00 VEHICLE TAX ($550,000)
meets revenue shortfall.
no service adjustments
some property tax relief possible by shift of transportation expenditures
from General Fund to Vehicle Tax Fund.
requires a referendum question.
*Caution on estimates
*May increase Vehicle Tax to a point where it
could finance a number of transportation related
services and reduce property tax assigned to
those services.
6. VEHICLE TAX ONLY
can be established at a point where it meets revenue shortfall and
May provide property tax relief.
$25 Vehicle Tax - $1,000,000
7. 1/4% SALES TAX ($500,000) PLUS PROPERTY TAX INCREASE
could meet revenue shortfall, but does not provide property tax
relief.
FE
2
A
8. VEHICLE TAX PLUS PROPERTY TAX INCREASE
could meet revenue shortfall, but does not provide property tax
relief.
9. PROPERTY TAX INCREASES
3
.v
SOME ALTERNATIVE STRATEGIES AND WAYS
TO BALANCE THE CITY OF IOWA CITY'S BUDGET
IN YEARS AHEAD
(see next page for possible supplemental
recommendations for each alternative)
rt���m
INCREASE PROPERTY TAX BY SUFFICIENT MILLAGE EACH YEAR TO
BALANCE THE BUDGET, UNTIL MAXIMUM LEVY AND EMERGENCY LEVY
ARE USED.
+M=
PROP
INCREASE THENERTY RETURNNTO THES TO THE MAXUM LVY FOR ONNO MOREIMTHANE6 PERCENTE
EINOR TWO
CREASE
POLICY.
ONE-HALF CENT SALES TAX ($ 1 MILLION)
ANY ADDITIONAL REVENUE COMES FROM PROPERTY TAXES OR
INCREASED CHARGES
ONE-HALF CENT SALES TAX
CITY NOT INCREASE TOTAL SPENDING FOR ONE YEAR (88-89)
U;,:
ONE CENT SALES TAX ($2 MILLION)
ONE MILLION OF THIS GOES FOR REDUCED PROPERTY TAXES
LEVY MOTOR VEHICLE TAX SUFFICIENT TO PAY $500,000 TO
$750,000 OF BUS FINANCING. REDUCE PROPERTY TAX LEVY FOR
BUS SERVICE.
LEVY PROPERTY TAX FOR REMAINDER OF REVENUE GAP.
INCREASE HOTEL/MOTEL LEVY TO MAXIMUM RATE TO PRODUCE
$80,000. (SHIFT EXPENDITURES SO THAT THIS MONEY COULD
REPLACE SOME PROPERTY TAX.)
Mr
.V'
•
No
POSSIBLE SUPPLEMENTAL RECOMMENDATIONS
p A.
MAYOR AND COUNCIL APPOINT A BLUE RIBBON ECONOMY COMMITTEE
TO REVIEW ALL CITY OPERATIONS
B.
t:
COUNTY AND CITY GOVERNMENTS APPOINT A CITIZENS GROUP TO
MAKE SUGGESTIONS FOR
ELIMINATING DUPLICATION OF GOVERNMEN-
TAL SERVICES IN THE JOHNSON COUNTY
AREA
� C.
MAYOR AND COUNCIL APPOINT A SPECIAL CITIZENS' COMMITTEE TO
REVIEW BUS FINANCING AND
OPERATIONS
D.
HAVE A CITIZENS' TASK FORCE MAKE RECOMMENDATIONS FOR POL-
ICE/FIRE COORDINATION
E.
STUDY THE POSSIBILITY OF ADDITIONAL CHARGES FOR SERVICES
PROPERTY EXEMPT FROM THE TO
PROPERTY TAX
r F•
FIND WAYS TO SPREAD OUT DEBT SERVICE COSTS TO REDUCE THE
PROPERTY TAXES LEVIED FOR THIS PURPOSE
G
v
ORE THE Y FUND CCOMMUNITYMAJOFACILITIES BUTIONS
ARELMAPRIVATE TDONORS
FOR
TAE PROJECTS)
H.
EXPLORE USING MORE ENTERPRISE AND OTHER NONTAX REV
GENERAL FUND PURPOSES REVENUES FOR
I.
IF THE SCHOOL DISTRICT RECEIVES SUBSTANTIAL ADDITIONAL
STATE AID FROM THE 1987
f
LEGISLATURE, GET A COMMITMENT THAT
SCHOOL TAXES WILL NOT INCREASE
.V'
•
No
.a•
Pe,. Aw m
sJia/g7
PROPERTY TAX: ADVANTAGES AND DISADVANTAGES
1. Fairness--Progressivity or regressivity.
Difficult to estimate precisely, but most analysts conclude
that it is regressive among lower to middle income
households (taking a larger proportion of income the lower
one's income) but may become progressive at higher income
levels.
2. Fairness --Benefits Received.
- Some city services are related to property value (police,
fire) others are not (recreation),
- Owners of tax exempt property, non-resident commuters and
shoppers, and visitors benefit from some city services but
don't pay property taxes directly.
- Similarly, the approximately 7,300 University students
living in dorms and family housing (about 258 of all
students) do not pay property taxes directly.
3. Fairness --Do Renters and Shoppers Pay Taxes Indirectly'
Owners of commercial property (including rental housing)
probably shift some or all of the property tax onto renters
and customers by charging higher prices or rent to cover
their tax bills. The extent to which this occurs, however,
is impossible to measure.
4. Fairness --Relation to Personal Circumstances and Cash Flow.
- The property tax, unlike the income tax, does not make
adjustments for personal circumstances such as family size
or other things that affect real ability to pay.
- Property Tax does not take into account the current income
or cash flow of a household, and it is current income that
must be used to pay the taxes.
- In Iowa, only the elderly and disabled are somewhat
protected from these problems through a "circuit -breaker"
property tax relief program that assures that low income
elderly and disabled individuals do not pay exceessive
amounts of property tax relative to current income.
5. Net Burden on Iowa City Residents.
The property tax is fully deductible on state and Federal
income tax returns. For someone in the 283 Federal tax
1
M/
.o1
bracket and, say, the 108 state bracket, a $100 increase
really costs only about $68. (This benefits renters as
well, since landlords deduct property taxes and thus have
less to pass on.)
- Property taxes on industrial and utility property (about
128 of the tax base) are probably largely paid by owners and
customers residing outside Iowa City.
6. Effects on Investment
Property tax rates may or may not have an effect on
decisions regarding investment in property improvements or
on location decisions of businesses. Conclusive evidence on
this point is difficult, if not impossible, to obtain.
Note: Currenttotal property tax rate is about 9.68 lower in
F. Coralville, 7.38 lower in North Liberty,. for example; for an
investor considering the location of a new building, those
rate differences would translate into a savings of less than
28 of building costs over the life of the building. Is that
enough to change the ideal location given all the other
considerations involved?
7. Responsiveness and Stability.
F
t - Less responsive to changes in the economy than sales tax.
i. - More stable and predictable.
- In periods of inflation, city costs likely to rise more
rapidly than the tax base; in periods of recession, tax base
may continue to increase for a while while costs are
relatively stable.
4
8. Revenue Adequacy.
r
! - Currently about $2.2 million in "slack" remaining in the
property tax (i.e., additional revenues obtainable by
r' raisin
g general fund and transit levies to maximum and
(: shifting all employee benefits out of general fund;
emergency levy and library levy could each add about
r $288,000 more).
P
- Almost half of the $2.2 million cushion would be used up
in fiscal year 1988-89 to meet shortfall.
i
i - Whether city would continue to have a cushion in excess of
$1 million in future years depends on the fate of state and
federal aid programs and continued growth in the property
tax base keeping pace with inflation in city costs.
Y
2
6
Revenues From
Charges in Enterprise Funds
City
of Iowa City
f
CC,
P
Fiscal Year
Estimate -1987
Fiscal Year
Budgeted -1988
r
f
1,622,000
1,798,000
t
Pollution Control Operations
1,624,000
2,775,000
4,347,000
Water Operations
1,763,000
2,070,000
2,260,000
Refuse Collection Operations
568,000
584,000
611,000
Landfill Operations
663,000
663,000
Revenues From
Charges in Enterprise Funds
City
of Iowa City
Fiscal Year
Actual -1986
Fiscal Year
Estimate -1987
Fiscal Year
Budgeted -1988
Parking Operations
1,622,000
1,798,000
1,847,000
Pollution Control Operations
1,624,000
2,775,000
4,347,000
Water Operations
1,763,000
2,070,000
2,260,000
Refuse Collection Operations
568,000
584,000
611,000
Landfill Operations
663,000
663,000
685,000
Airport Operations
75,000
92,000
95,000
Bus Operations
829,000
768,000
753,000
TOTAL
7,144,000
8,750,000
10,598,000
.v
ME�oR4WDUMIowa city
_
Date: May 14, 1gBI
To; Mayor Ambrisco
and City Council Members
From: Terrence L. Timmins, City Attorney
y Re: Update
1• West Benton Street Bridge
ry' The Y has Improvement Project.
Cit acquired
widening the west all
necessary
been scheduled approach to the BentonPrOperty and
representatives for Thursda Street bridge easements for
to the north and to discuss Ythe ' May 1q, with CRANpIC 9e• A meeting has
bridge; south of Benton itY s acquisition ofand Iowa Electric
Street (Z) the improvement Street along the eastCRAIiDIC property
Althou6 and, (3) the Of
the CRAN0IC approach to the
9h CRANDIC and Iowa of crossing over
items mentioned Electric are n Iowa Electric Benton
to a If agreement is not a will. to Power
author: is not reached int as Cooperate on the
tion to Is
the to what the City will
soon, we will likel have
Z• Kohlscheen v, Pr°Perty• Y seek Council
Cit (Subdivision dispute -
Dick Bo Highway 1 and Miller
to haveyle is resisting efforts b Avenue)
a motiontte City's cross-claims bytw dismissed
have Attorne Dick McFall and Poggenpohl)
the Kohlscheens in this Y Marion Neely disqualif,ed i also likely
tinues to represent lawsuit, since from representing file
e by sellin Oakes and We he also represented
g off lots without first gman, who startedthisand con -
off some serious hollering subdividin this whole problem
3, g• This is certain to set
Library Roof Problem,
? David Brown
f Board Member Tom I met with Library Director
t ing a developingSuR°°Y last week to Lolly Eggers and
{ alerted the Board Problem with the LIbrarw the City'roof s options Library
installed, that about a problem with the roof " Taylor Roofingard-
walls at theedges,
Causes it to shrink membrane', Roofinghasch
would like toeen I t theiCitylsntuall cooperatlonual nand leakageeiparapetTa Y
pian manufactur Y to tears from
Pursue the in
the matter membrane. We g01n9 after the Euro -
sed
( directly with Taylor have advised Euro -
4• Settlement of under the warranty. the Board to
Claim by Car) Sweeting -
As per '" S, Sycamore.
Council's request during a recent executive
setMr, Walker's explanation regarding the insurance
settle this claim. session
+' find attached
carriers decision to
i
i
1
i
I
8//
5. Sewer Treatment Plant Site Acquisition.
jThe closing on the City's purchase of the Langenberg farm
occurred on Thursday afternoon, May 14th. The deeds and
other necessary documentation were filed in the County Re-
corder's Office on Fricay, May 15th. The City now owns
the site.
PHELAN, TUCKER, BOYLE & MULLEN
ATTORNEYS AT LAW
WILLIAM V. PHELAN
%7LLIAM M. TUCKER
DANIEL W. BOYLE
CHARLES A. MULLEN
ST01FEN P. BRIGHT
BRUCE L. WALKER
RICHARD M. TUCKER
THOMAS H. GELMAN
STEVEN R. REGENWE HER
MARY EL6ABETH PHELAN
Mr. Terrence Timmins
City of Iowa City
Civic Center
Iowa City, IA 52240
321 MARKET
P.O. BOX 2150
IOWA CITY, IOWA 52244
(319) 3541104
May 8, 1987
RE: Carl Sweeting v. -city of Iowa City
Dear Terry:
LOUIS SHULMAN (19061982)
This case was commenced on March 28, 1986. Thereafter, I
spoke to Harry Boren, who checked the area and advised that
the manhole in question was constructed appropriately.
Later, I was advised by Mr. Gerard that when City buses drove
over the manhole in question, vibrations caused $3,000 to
$4,000 in damage to the Sweetings' home; that after claimant
noticed the vibration problem, he contacted the City and an
unidentified City employee went to the site, said that the
manhole was installed improperly and corrections were made.
Thereafter, no problems occurred.
I next talked to Jim Schulte. Jim told me that a lady called
him during the fall of 1985. He went out and talked to her,
and she claimed thatthe manhole made noise that they could
hear at their home, both inside and outside. He checked the
manhole and determined that the slab around the manhole was
broken. He told her that could be making the noise. We
checked the records of the City Street Department and deter-
mined that the work was done by a City crew initially. I
enclose the records and Jim's letter.
P Based on that information, Western had decided they wanted to
4 settle the case. My first authority was $750, but it was
j approved to go to $1,500 to avoid the expense of litigating
I this issue, given the fact that apparently City crews had
misconstructed the slab in question, causing vibrations and
= noise which could have bothered the Sweetings. During the
negotiation process, Jim Schulte became disabled from illness
and died. : C
LEGI;
I W
Thereafter, Plaintiffs counsel accepted the $1,500 and it
E has been paid and the case settled. This settlement can be
justified in the sense that it would cost more than $1,500 to
va win the case, and there appears to be some likelihood that
liability exposure did exist to an indeterminate amount of
qdamages. I believe Western's decision was based solely on a
cost -of -defense or "nuisance value.
If you have further questions about this I will be happy to
advise.
Very truly yours,
Bruce L. Walker
BLW:nmg
.P'
F CITY
OF IOWA CITY
CIVIC CENTER 410 E. WASHNNGTON ST. IOWA CRY, IOWA 52240 (319)356-50M
f
May 7, 1986
Bruce Walker
Attorney at Law
321 E. Market St.
Iowa City, Ia. 52240
Dear Mr. Walker:
Subject: 1409 So Sycamore Street
The first time the Street Division performed repairs at 1409 So.
Sycamore Street was on June 29, 1984. The employees who did the
repairs were: Gerry Kaefring, George Knottnerus, Duane Coblentz
and Vern Fisher. Even though extensive street repairs were done,
moisture got into the repaired area and the repairs did not last.
On approximately September 20, 1985, a complaint was received in the
Street Division. On the.same day, I went out to investigate the
complaint. I then knocked at the door of 1409 So, Sycamore, where
I spoke with the lady who lived there. She stated that when buses
drove over the manhole, it caused a noise. I told her the concrete
around the manhole was rocking, which could possibly make noises
In her basement. I assured her we would repair it before leaf
removal season and she agreed that was acceptable.
We did the repair on October 8, 1985. The employees who did the
repairs were: Steve Jenn, George Horn, Randy Salm and Brian Michel.
If you need any further information, please contact me at my office
phone (356-5182).
Sincerely,
Jim Schulte
Asst. Superintendent of Streets
Enc. 2
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