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HomeMy WebLinkAbout1980-03-04 Info Packet4 I February 29,1980 Ltr from Iowa City Assoc of Professional Fire Fighters re layoffs 514 Ltr from Jay H.Honohan re Budget and Police Cuts and Fire Cute 515 Ltr from Harriet Ginsberg,Pres,Mall Merchants Assn. re Police and Fire reductions 516 Finance Memo re Budget Procedures 517 P&Z Staff report re Mcbride Addition,Part 3 (item 4d agenda) 518 Ltr from Richard C.Wright re Firefighter staff reductions ' 519 i J RECC'.'L--T- 0 OFFICE OF THE SECRETARY OF TRANSPORTATION i WASHINGTON, D.C. 20380 I February 15, 1980 0 ✓LI L' IIMII Ir:55� : low we un Nr. with. Ms. Mary C. Neuhauser Council Member City of Iowa City 410 E. Washington Street Iowa City, Iowa 52240 Dear Ms. Neuhauser: This is to follow-up my letter of December 14 concerning the question of Iowa City's eligibility for Section 5 operating funds, in light of its attainment of SMSA status. It is my understanding that you may have already received a fairly definitive response on this matter from Jack Watson, at the White House. In any event, after initial questioning revealed that the likelihood of Section 5 funding is slight, I requested that several possibilities be further explored. Unfortunately, the basic requirement of "urbanized area" designation cannot be avoided since it part of the Section 5 legislation. And, in turn, the "urbanized area" designation cannot be accomplished until after the 1980 decennial census. 1 am sorry that I cannot be of greater assistance in this matter. Sincerely DouglasG. Wrigh Associate Deputy Secretary MICROFILMED BY JORM MICR+LAS CEDAR RAPIDS - DES MOINES 0 February 28, 1980 The Honorable Robert Ray Governor State House Des Moines, Iowa 50319 Dear Governor Ray: The purpose of this letter is to express my appreciation for the opportunity to visit with you on February 21, 1980, as a member of the delegation of large city Mayors. It is my belief that officials from large cities, who as a group represent a majority of the citizens'of our state, need to be able to communicate their common concerns to the appropriate higher governmental authorities. In view of this consideration, your demonstrated interest and enthusiastic participation in our February 21 discussion is especially gratifying. I am confident that this opportunity for communication will continue in the future. Thank you. Sincerely yours, John R. Balmer Mayor City of Iowa City bj3/4 cc: City Council MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS •DES MOINES r, T, s{ February 26, 1980 Robert W. Marpster League of Iowa Municipalities Suite 100 900 Des Moines St. Des Moines, Iowa 50316 Dear Bob: The City Council made a decision on February 5, 1980 not to allocate funds for participation in the defense of the City of Council Bluffs regarding the E.E.O.C. lawsuit as indicated in your February 11 memorandum. Council expressed several concerns regarding financial participation including what funds might be allocated since it appears that members of the pension board have control over the expense fund and would not likely allocate money for the defense against a lawsuit which would be in their general interest. The primary reason why Council's decision was negative, however, revolves around the State taking the position that it is not a party to the lawsuit and could not be considered responsible. Council feels very strongly that the State should be responsible for expenses incurred by cities as a result of state legislation. Council Bluffs clearly faces the issue of the lawsuit due to the fact that it has elected to follow a procedure which is in compliance with Chapter 411 of the Iowa Code. Under these circumstances, I would suggest that it would be extremely difficult to pursuade our Council to provide funds for defense in this kind of case where the state denies responsibility. Council has further directed that this issue be brought to the attention of our area legis- lators as one more example of our dilemma regarding mandated costs. MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES y95 - i I J February 26, 1980 Robert W. Marpster League of Iowa Municipalities Suite 100 900 Des Moines St. Des Moines, Iowa 50316 Dear Bob: The City Council made a decision on February 5, 1980 not to allocate funds for participation in the defense of the City of Council Bluffs regarding the E.E.O.C. lawsuit as indicated in your February 11 memorandum. Council expressed several concerns regarding financial participation including what funds might be allocated since it appears that members of the pension board have control over the expense fund and would not likely allocate money for the defense against a lawsuit which would be in their general interest. The primary reason why Council's decision was negative, however, revolves around the State taking the position that it is not a party to the lawsuit and could not be considered responsible. Council feels very strongly that the State should be responsible for expenses incurred by cities as a result of state legislation. Council Bluffs clearly faces the issue of the lawsuit due to the fact that it has elected to follow a procedure which is in compliance with Chapter 411 of the Iowa Code. Under these circumstances, I would suggest that it would be extremely difficult to pursuade our Council to provide funds for defense in this kind of case where the state denies responsibility. Council has further directed that this issue be brought to the attention of our area legis- lators as one more example of our dilemma regarding mandated costs. MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES y95 - i I Robert W. Harpster February 26, 1980 Page 2 If you desire any further clarification or other information, please don't hesitate to give me a call. Sincerely yours, Dale E. Helling Assistant City Manager bj2/10-11 cc: City Council City Manager Legal Department Finance Director MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES u 1 �s 3 i c f I Fr F! >1 y VI1 4i t t l; I t Y i r r Robert W. Harpster February 26, 1980 Page 2 If you desire any further clarification or other information, please don't hesitate to give me a call. Sincerely yours, Dale E. Helling Assistant City Manager bj2/10-11 cc: City Council City Manager Legal Department Finance Director MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES u 1 �s i kl..1`T1VED 1`111 2 9 1980 Jowh PLANNING AND RESEARCH DIVISION 800 LINCOLN WAV AMES. IOWA 50010 I i February 27, 1980 Rfi NO 701.000 Honorable Robert A. Vevera Mayor, City of Iowa City City Hall Iowa City, Iowa 52240 Dear Mayor Vevera: On Wednesday, March 5, 1980, the Iowa Department of Transportation will hold a public information meeting to discuss a proposal for rerouting U.S. 6 from its existing location to I-80. The meeting will start at 7:00 p.m. in the auditor- ium of the Iowa Valley High School, 359 East Hilton, Marengo. The proposal is part of an overall plan to upgrade routings on four U.S. high- ways in Iowa. The plan for central Iowa calls for placing U.S. 6 on I-80 from the present U.S. 6/I-80 interchange in Council Bluffs east to the U.S. 6/I-280 interchange in Davenport. Existing U.S. 6 in your area would be signed as Iowa 600. The proposal is administrative in nature and if adopted by the Iowa DOT will not affect funding for maintenance or construction on the existing route. The purpose of the meeting is to fully explain the plan and to hear from residents and business people any effect this proposal will have on them. If interested citizens find it impossible to attend this meeting, they should be encouraged to submit written comments to me for consideration prior to March 15. Please accept this letter as a personal reminder and an invitation to attend. LDS/acb ? JULES M. BUSKER MOP, CII, i' Very truly yours, Leland D. Smithson, Director Office of Transportation Inventory 515-296-1134 COMMISSIONERS BARDARADUNN CROGER FAIR DONALD K. GARDNER WILLIAM F. MCORATH De, Molne, D."APOII Cedu RaPld, Mtlrou MICROFILMED BY JORM MICR+LA8 CEDAR RAPIDS - DES MOINES U/ ROBERT R. RIOLER BRUCE H. VAN GRUFF Now H,mPIOn Red 0,4 I i CITY OF IOWA CITY CIVIC, (71_NIE-R 410 E. WAS[ IINGION SI. IMA QIY IOWA 52240 (319) 354.1800 February 27, 1980 Francis W. (Bud) Sueppel, Jr. President, Downtown Association c/o Sueppel's Flowers 117 E. College St. Iowa City, Iowa 52240 Dear Bud: The City Council recently discussed the matter of communications with the Downtown Association. In the past, various staff members have dealt directly with your association regarding issues which related to their specific department or function and it is our intent to maintain this policy. However, it will be to our mutual benefit to coordinate the City's effort though one staff person. The Council and City Manager have agreed that I will be responsible for the liaison function between the City and the Downtown Association. It will be my responsibility to see that all matters of concern to your organization are addressed by the various City departments and to communicate to you additional concerns which the Coucnil or staff may have. I am looking forward to working with you and the members of your organization and I am confident that we can maintain what has always been a cooperative effort in making the downtown an attractive and pleasant asset to the vital commercial interests of our city. Please feel free to contact me at any time. Sincerely yours, Dale E. Helling Assistant City Manager cc: City Council City Manager Larry Chiat, Redevelopment Coordinator Keith Kafer MICROFILMED BY DORM MICR+LAS CEDAR RAPIDS DES MOINES February 25, 1980 Mrs. Kenneth Kinsey, President Districtwide Parents Organization 38 Post Road Iowa City, Iowa 52240 Dear Mrs. Kinsey: This letter is in response to your request for information regarding several specific questions you addressed to the City Manager on February 22, 1980. I will address each question as it was related to me. 1. One crossing guard is assigned to each of the following locations: Burlington and Muscatine; Dodge and Church; Governor and Church; Benton and Greenwood; Muscatine and Dover; Benton, Miller, and Hudson; Court and First Avenue; Lee and Park Road; Prentiss and Gilbert; Bradford and First Avenue; Sunset and West Benton; Court and Second Avenue; and the railroad crossing on Greenwood Drive. Personnel assigned at Prentiss and Gilbert and at Bradford and First Avenue work for approximately 45 minutes in the morning and again for 45 minutes in the evening. All other crossing guards, in addition to the morning and evening periods, spend approximately one hour on their respective corner during the lunch hour. 2. The budget process is a very simple one for this function. For FY80, Council has budgeted $25,000. Of this amount approximately $500 is set aside for the purchase of uniforms, vests, and signs. The remainder is for personnel. For the present fiscal year, the projected total cost at the current service level is $29,160. This represents the cost of personal services. In addition to this, approximately $450 has been spent for the above- mentioned commodities. Further, the parking supervisor uses a police department vehicle and those expenses are absorbed in the police department operating budget. The FY81 budget will include $22,500 for the crossing guard program. Attached to this letter is an appendix which I submitted to the Counci recently and which basically projects expenditures for FY81 under two possible circumstances; one maintaining current salaries and the other assuming an 8.5% or $1.00 per day average increase. Again allowing for purchase of equipment in the amount of approximately $500, this would leave $22,000 for personal services. Table 2 in the attached appendix clearly indicates that in either case a maximum of eight crossing guards could be employed. MICROFIL7ESNE JORM MCEDAR RAPIDS Wt D Mrs. Kinsey February 25, 1980 Page 2 I realize that this represents a sort of backward budgeting or budgeting in reverse. However, Council has chosen to set a maximum limit and we are formulating a program which can operate within those parameters. 3. All crossing guards are paid by the day. The range is from $10 to $13 per day depending on longevity. The supervisor is paid $15 per day and generally works considerably longer in a given day than do any of the crossing guards. That position is presently filled by Mr. Don Akin, a retired City employee, who displays a commendable interest and willingness to devote a considerable amount of time to the project for a relatively small amount of compensation. 4. As indicated above, the intersection of Gilbert and Bowery and Prentiss is presently staffed by one crossing guard. The traffic light at that intersection is also in operation. 5. It does not appear that at any time in the past the Catholic school system has been asked to participate financially in this program. 6. The City has rejected the concept of using portable stop signs. Section 321.252 of the Code of Iowa directs the Iowa Department of Transportation to adopt standards similar to the federally adopted standards which are put forth in the Manual on Uniform Traffic Control Devices. The State has adopted this manual and that same section of the Code further dictates that local authorities will adhere to the standards adopted by the State. The manual does not allow for the use of portable stop signs except for emergency purposes. Therefore, in the interest of uniformity and consistency and in order to avoid increased liability on the part of the City for a violation of accepted standards, City policy is to conform to the State and Federal standards. I hope that the above information will adequately clarify those questions and concerns which you have expressed. Please feel free to contact me at any time if you require further information. Sincerely yours, Dale E. Helling Assistant City Manager Enclosures cc: City Council City Manager Dr. David Cronin Sharon Lust tpl/12-13 MICROFILMED BY JORM MIC R+LA 13 CEDAR RAPIDS • DES MOINES M IOWA CITY COMMUNITY SCHOOL DISTRICT David L. Cronin Superintendent 28 February 1980 1040 William Strcet Iowa City, Iowa 52210 318-335.3685 Neal Berlin, City Manager Civic Center Iowa City, Iowa Dear Neal: This is to confirm the reports in the media that the Board of Directors at their February 26, 1980, meeting, tabled considera- tion of making any financial contribution to the City's adult crossing guard program. The primary reason for not taking action was the need to have a legal opinion prepared regarding a conflict of interest issue. I anticipate this opinion will be prepared in time for the next Board meeting on March 11, 1980. I will inform you of that decision when it is reached. Sincerely yours, L.— David L. Cronin cc: Don Borchart, Attorney Members, Board of Directors Sharon Lust, DPO Safety Committee MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES 21 ..ECE1VED ; :: 2 February 22, 1980 Tot President ;Nicolas Karkagan and School Board Members Reft Adult Crossing Guard Program The Safety Committee of the Districtwide Parent Organization, in an attempt to represent the parents of the various Iowa City Schools involved with adult crossing guards, has encour- aged the Iowa laity City Council to cont' -nue the present adult crossing guard program for the rest of the 1979-80 school year. At the Iowa City Council meeting February 1, 1980, the City Council indicated a serious consideration to appro- priate the $4,000 or portion of the $4,000 needed for the 1979-80 school year providing the School Board showed a willingness to cooperate. At that meeting the Iowa City Council also stated that $22,500 has been appropriated for the 1980-81 school year for the adult crossing guard program. We detect some past misunderstanding between the Iowa City Council and the Iowa City School Board. As a Safety Committee for the parent group, we feel thurc,should not be misunder- standings in connection with the safety of children. 'therefore, we feel that our School Board should seriously consider their position in the funding of an adult crossing guard program. If you do not find you can supplement an adult crossing guard program, indicate your reasons so that the Iowa City Council can appreciate your position at this time. In the meantime, the Safety Committee will continue to work on crossing guard needs for the school year 1980-81. Respectfully, Sharon Lust, Chairperson Districtwide Parent Organization Safety Committee ccl School Boitrd Members David Cronin, School Superintendent John Balmer., Mayor Jeanette Kinsey, President Districtwide Parent Organization MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES TOO I f a i I ..ECE1VED ; :: 2 February 22, 1980 Tot President ;Nicolas Karkagan and School Board Members Reft Adult Crossing Guard Program The Safety Committee of the Districtwide Parent Organization, in an attempt to represent the parents of the various Iowa City Schools involved with adult crossing guards, has encour- aged the Iowa laity City Council to cont' -nue the present adult crossing guard program for the rest of the 1979-80 school year. At the Iowa City Council meeting February 1, 1980, the City Council indicated a serious consideration to appro- priate the $4,000 or portion of the $4,000 needed for the 1979-80 school year providing the School Board showed a willingness to cooperate. At that meeting the Iowa City Council also stated that $22,500 has been appropriated for the 1980-81 school year for the adult crossing guard program. We detect some past misunderstanding between the Iowa City Council and the Iowa City School Board. As a Safety Committee for the parent group, we feel thurc,should not be misunder- standings in connection with the safety of children. 'therefore, we feel that our School Board should seriously consider their position in the funding of an adult crossing guard program. If you do not find you can supplement an adult crossing guard program, indicate your reasons so that the Iowa City Council can appreciate your position at this time. In the meantime, the Safety Committee will continue to work on crossing guard needs for the school year 1980-81. Respectfully, Sharon Lust, Chairperson Districtwide Parent Organization Safety Committee ccl School Boitrd Members David Cronin, School Superintendent John Balmer., Mayor Jeanette Kinsey, President Districtwide Parent Organization MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES TOO I f A Date: February 28, 1980 To: Members of the Iowa City City Council Re: ADULT CROSSING GUARD PROGRAM In view of the action relating to the Adult Crossing Guard Program taken by the Iowa City Board of Education at its February 26 meeting, the Iowa City Schools' Districtwide Parent Organization (OPO) again urges you to act upon the followine proposals: I. Provide funding to maintain the present Adult Crossing Guard Program for the remainder of the 1979-80 school - year in order to insure continuity for the children and to allow time for compromise measures to be fully investigated. 2. Review budget priorities for 1980-81 and identify monies which could be diverted to the Adult Crossing Guard Program, should that prove necessary, for maintaining an adequate program. The DPO Safety Committee is continuing to review the existing Adult Crossing Guard Program and will be sending to you their recommendations in the near future. Jeanette Kinsey, President Districtwide Parent Organization 38 Post Road Iowa City, Iowa 52240 cc: City Manager Sharon Lust Dr. David Cronin MICROFILMED BY JORM MICR;LAB CEDAR RAPIDS • DES MOINES I ly � I E i Y Date: February 28, 1980 To: Members of the Iowa City City Council Re: ADULT CROSSING GUARD PROGRAM In view of the action relating to the Adult Crossing Guard Program taken by the Iowa City Board of Education at its February 26 meeting, the Iowa City Schools' Districtwide Parent Organization (OPO) again urges you to act upon the followine proposals: I. Provide funding to maintain the present Adult Crossing Guard Program for the remainder of the 1979-80 school - year in order to insure continuity for the children and to allow time for compromise measures to be fully investigated. 2. Review budget priorities for 1980-81 and identify monies which could be diverted to the Adult Crossing Guard Program, should that prove necessary, for maintaining an adequate program. The DPO Safety Committee is continuing to review the existing Adult Crossing Guard Program and will be sending to you their recommendations in the near future. Jeanette Kinsey, President Districtwide Parent Organization 38 Post Road Iowa City, Iowa 52240 cc: City Manager Sharon Lust Dr. David Cronin MICROFILMED BY JORM MICR;LAB CEDAR RAPIDS • DES MOINES I I City of Iowa Ci y MEMORANDUM j Date: February 27, 1980 To: City Council From: Richard J. Plastino, Dir ctor of Public Works Re: New Transit Routes The City Council had asked abou e s atus of the new transit routes. The Transit Manager has been awaiting a decision on the fare structure f prior to preparing maps and information handouts. In addition, the f Transit Manger has placed the FY81 transit grant application ahead of implementation of new routes. We ect t the four do top eight aweeks.neAdeq ate publiroutes will cityt will be into in approximately starting the revised routes. prepared prior to cc: Hugh Mose bj3/1 MICROFILMED DY JORM MICR�LA13 CEDAR RAPIDS • DES MDINES u._ I j r� R ei - W - u f I i City of Iowa Ci y MEMORANDUM j Date: February 27, 1980 To: City Council From: Richard J. Plastino, Dir ctor of Public Works Re: New Transit Routes The City Council had asked abou e s atus of the new transit routes. The Transit Manager has been awaiting a decision on the fare structure f prior to preparing maps and information handouts. In addition, the f Transit Manger has placed the FY81 transit grant application ahead of implementation of new routes. We ect t the four do top eight aweeks.neAdeq ate publiroutes will cityt will be into in approximately starting the revised routes. prepared prior to cc: Hugh Mose bj3/1 MICROFILMED DY JORM MICR�LA13 CEDAR RAPIDS • DES MDINES u._ I j City of Iowa CIL`) MEMORANDUM --1 Date: February 21, 1980 To: Dick Plastino p` From: Chuck Schmadeke Re: Scheduling for Scott Boulevard Between Highway 6 and Muscatine Avenue Dick, if we are fortunate enough to receive the letters of intent from all property owners along Scott Boulevard by March 1, 1980, the following schedule can be implemented: March 4, 1980 - March 18, 1980 - March 19 thru - April 15, 1980 April 22, 1980 - May 15, 1980 - May 20, 1980 - bdw4/2 Plans, specs and estimate filed with City Clerk; set public hearing date. Hold public hearing and approve plans, specs and estimate. Obtain warranty deeds from property owners. Set bid date and authorize City Clerk to advertise for bids. Open bids. Award contract. MICROFILMED BY JORM MICR�LAB CEDAR RAPIDS • DES MOINES �I I i i t p If I City of Iowa CIL`) MEMORANDUM --1 Date: February 21, 1980 To: Dick Plastino p` From: Chuck Schmadeke Re: Scheduling for Scott Boulevard Between Highway 6 and Muscatine Avenue Dick, if we are fortunate enough to receive the letters of intent from all property owners along Scott Boulevard by March 1, 1980, the following schedule can be implemented: March 4, 1980 - March 18, 1980 - March 19 thru - April 15, 1980 April 22, 1980 - May 15, 1980 - May 20, 1980 - bdw4/2 Plans, specs and estimate filed with City Clerk; set public hearing date. Hold public hearing and approve plans, specs and estimate. Obtain warranty deeds from property owners. Set bid date and authorize City Clerk to advertise for bids. Open bids. Award contract. MICROFILMED BY JORM MICR�LAB CEDAR RAPIDS • DES MOINES �I I � j i i � j City of Iowa CIC MEMORANDUM Date: February 28, 29 0 To: City Council From: Dick Plastino Re: Lighting on Ri \ ad at North Dubuque and at Curve at Top Of Hill on Ridge A member of Council had indicated there might be some problem with inadequate light in this area due to the dirtiness of the lens or some other mechanical problem. The Traffic Engineer has checked out both lights and reports that they are operating and in good mechanical condition. If you have more information about this particular situation, please let me know. cc: Jim Brachtel tp2/20 MICROFILMED BY JORM MICR+LA6 - CEDAR RAPIDS • DES MOINES 4 n a 9 } d City of Iowa CIC MEMORANDUM Date: February 28, 29 0 To: City Council From: Dick Plastino Re: Lighting on Ri \ ad at North Dubuque and at Curve at Top Of Hill on Ridge A member of Council had indicated there might be some problem with inadequate light in this area due to the dirtiness of the lens or some other mechanical problem. The Traffic Engineer has checked out both lights and reports that they are operating and in good mechanical condition. If you have more information about this particular situation, please let me know. cc: Jim Brachtel tp2/20 MICROFILMED BY JORM MICR+LA6 - CEDAR RAPIDS • DES MOINES 4 n a City of Iowa City MEMORANDUM nate: February 29, 1980 To: City Council J From: Rosemary Vitosh, Director of Finance Re: Final Proposed Budget The f011Owinq changes have been made to the FYB1 General Fund Budget as a result of the Council's budget discussion on Monday, February 18, 1980: 1. Disbursements will include $1,000 for the northside lighting project. 2. Aid to Agencies' budget will include $20,000 for senior citizen services. 3. A collective bargaining reserve of $100,000 has been put under Continnency. 4. Health insurance and life insurance have been budgeted under the General Fund. The budnet has been finalized and balanced as a result of the following additional changes which will be discussed with Council at the informal meeting on March 3, 1980: 1. The transfer of the $2 parkinq fine revenue from the Parking Revenue Fund to the General Fund will not be budgeted. It appears that this revenue will be needed for funding in the parking fund because parking because the orevenue from rceent nramps swill abeelower lthan be cexpected harged here d due to construction delays in the CBD. 2. A tort liability levy of $110,544 will be necessary to fund the nrojected costs of purchasing general liability insurance for the City. 3. Asphalt resurfacing has been increased from $200,000 to °255,000. 4. $96,160 will be transferred from the General Fund to finance the reconstruction of the Iowa Plate Glass building. MICROFILMED BY JORM MICR+LA9 } CEDAR RAPIDS • DES MOINES i 0 2 The General Fund balance projected for 6-30-81 is $1,347,586 with the following restricted and un -restricted amounts: r Restricted: Litigation Escrow FY80 Encumbrances $ 174,000 Transit Funding Reserve 54,339 FY80 Amendments Needed: 150,000 General Liability Insurance Subsidy to Airport 134,028 _ 17,318 , Unrestricted $ 529,685 _ 817,901 $1,347,586 The transit funding reserve results from the City's budgeting of $350,000 for transit assistance and will provide a reserve for funding transit operations if the assistance received is lower than budgeted. A portion of the unrestricted balance of $817,901 has been designated for the Purchase of the Recreation Center parking lot. bj5/2-3 r .i i. i r_ MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES M r <i C I T Y O F 1 O N A C I T Y PROJECTED FINANCIAL SUMMARY -FY80 EST. BAL. PROPERTY OTHER TRANSFERS TOTAL FUNDS TRANSFERS DISBURSE- TOTAL DIS- EST. BAL. 07/01/79 Tax RECEIPTS IN RECEIPTS AVAILABLE OUT MINTS BURSEMENTS 06/30/80 GENERAL: ADMINISTRATION f 653,155 $1,386,957 S 837,735 $ 483,031 $ 2,703.723 S 3,356,878 f 270.378 $ 1.649,411 $ 1,879,789 $1,177,089 HOME A COMMUNITY ENVIRONMENT: Plan A Program Development 52,569 116.643 8,250 -- 121.897 177./fi2 -- 1/2,288 112.288 35,171 Engineering 52,130 207,487 4,100 -- 211,587 264,017 -- 245,559 245,559 52.379 18,458 -- Public Works Administration --31: -- 21,334 52,379 29,933 52,379 34,849 -- -- 52.379 29.973 29.937 4.916 COD Maintenance 6,916 29,933 -- -- 7,735 7.735 -- 7,735 7,775 Energy Conservation -- 7,135 -- -- COMMUNITY PROTECTION: Police 165,741 1.026,302 10,170 55,500 1.091,972 1.257,717 -- 1,170.941 1.170,941 927.506 86,771 12.170 Fire 47,605 651,671 235,000 1,100 888,071 75205 935.676 87,017 -- -- 923,506 89.241 89.211 (2,191) Ansel Control 11,812 55,905 17,300 2,000 136,030 207,811 -- 188.871 188.871 18,940 Housing 1 Inspection Services 71,781 -- 136.030 -- TRANSPORTATION: Traffic Engineering -- -- 2,950 383,687 386,837 386.837 -- 383.881 383,807 2.950 Pass Transit (56,25 6) -- 730,425 309,110 1,039.865 983,609 13.241 968,851 982,092 1.173.666 1,517 (12.893) Street System Maintenance (18,356 -- 5,475 1,173,666 1,179.141 1,160,773 --1.173.666 PHYSICAL ENVIRONMENT: Recycling 6,616 22,933 7,200 10,000 40,173 46,749 40,133 40,133 6,616 8,820 Cemetery 7,479 73,258 13,500 3.500 90,258 97,737 88,917 88,917 HUMAN DEVELOPMENT: Parks L Recreation 97,234 718,991 109,435 12.930 841,356 938,590 -- 890.813 090.813 47,777 Senior Center -- -- -- 45.560 86,173 45,560 541,202 45.560 512,721 -- -- 45,560 521,019 15,560 521,019 -- (8,298 Library (28.481) 389,024 66,005 251.938 251,938 557,185 -- 557.185 305 247 CONTINGENCY: -- -- 251,938 -- SUBTOTAL $ 1,068,263 $4,717,884 $ 2,431,513 $2,588,421 S 9,737,818 $10,806,081 $ 800.804 S 8,612,710 S 9.413,514 $1,392,567 952_851 23.693.860 23,6.016 93,860 1.016 `450,696) CDEBT APITALRVICE PROJECTS 11 78320,88.371 10,857,518 2 510 207 13.363.725 25.144.556 -- ENTERPRISE: Parking Revenue 1.523.788 -- 724.516 -- 724,516 2,248,7D4 1,670,159 147,089 371,222 1,777,218 371,222 171,056 719,059 Perking Reserves 930,026 -- 66.050 923,250 94,205 -- 160,255 923,250 1,090,281 1.510,885 -- 576,580 535,799 1,112.379 406.506 Serer Operations Sorer Reserves 595,635 405,525 -- -- 12,200 175,286 187.186 593.011 279.000 98,748 377,748 1,624.874 215,263 233,109 Water Operations 321.033 -- 1.536,950 -- 401,662 1,536,950 427,662 1,857.983 1,047.698 566.750 100.000 1.058,524 333,162 433.162 614,536 Nater Reserves 620,036 -- 26,000 240,000 141,128 781.128 781,253 22,492 358.636 381,128 125 Refuse Operations 125 13,773 -- -- 341,700 -- 341,700 355.473 55,744 178,941 234.685 120,788 124.490 Landfill Operations Landfill Reserves 80,480 -- 4.000 40.000 44,000 57,870 124,480 73.285 -- - 73.285 - 73,285 - Airport Operations 15,415 89,811 -- -- 40,552 6.750 17,318 6,750 96,561 21:900 21,900 173.512 71,661 (21_9641 Airport Reserves TRUST 6 AGENCY 144,593 596,327 99,770 8.858 7 04,955 849,548 40,600 - 887,512 40,600 40,600 SPECIAL ASSESSMENT-CONSTRUCTIGN -- --40,600 -- 40,600 SPECIAL REVENUE: HCDA 398,409 -- 856,532 -- 856,532 1.254,941 -- 1,752,378 1,254.941 __ 11251.941 1,752,378 -- 21,780) Road Use Tax 174,016 -- 1,556,582 -- 1,556,582 607,616 1,730.598 99D.933 1,004.494 1,004,494 17 561) Revenue Sharing 383.317 607.616 $6.267,062 $20.760,099 $6.306.413 132.941.570 551,519,626 56.809.901 539.211.015 f/6.057.9/6 55./65.680 GRAND TOTAL 518.578.052 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS a DES MOINES 30 C I T Y O F 1 0 Y A C I T Y PROJECTED FINANCIAL SUMMARY -FYBI EST. BAL. 07-01-80 PRTARRTY REOTHER CEIPTS TRANSFERS TOTAL FUNDS IN RECEIPTS AVAILABLE DMENTSSE TRANSFERS TOTAL Dis- BURSEMENTS 06-30-81 GENERAL: GENERAL: $1,171.8/21 f 645.364 f 1.030.800 f 589.386 f 2,265,578 f 7,477.420 $ 1.756.785 3 733,049 f 2.089.874 (1,3/7,586 AUIINISTRATION: NOME A COMMUNITY ENVIRONMENT: 35,174 102,050 22,750 "" 124.800 159.974 159.974 -- 159,974 271,193 •- -- Planning 6 Program Dev. Englneering 18.458 215.955 9.780 255.735 54,098 274,193 54,098 274,193 54.098 -- -- 54.098 -- Public Yorks Adminlstretton is Works Ad -- 73,38] 26,726 " 20,715 26,716 23,290 31,642 -- 31.642 -- CBO 4,916 23.290 -- -- 23,290 31.612 23.290 -- 23.290 -- Energy Conservation -- COMUNITY PROTECTION: Police 86.772 1.262.743 26.600 -: 1.289.347 1.376.115 1.013.145 1.376,115 1.013.145 -- 1.376.115• 1.013.145 - Fire 12.170 750,675 55.548 250.300 24.850 __ 1,000,975 80.398 78.204 78,204 -- 78,204 248.043 _ Animal Control Housing f Inspection Services (2,194) 18.940 95.503 133.600 -- 229,103 248.047 248.043 TRANSPORTATION: Traffic Engineering 2.950 155.977 1.600 268,746 277.tl24 429,323 1,270.174 432.273 1,271,651 431,273 1.2/6:3 -' 25.000 432,271 Miss Transit 1.517 11,568 55.000 980.750 3.500 1.139.202 1,198,202 1.185.309 1.185,]09 1.185.309 -- Street System Maintenance (12.893) PHYSICAL ENVIRONMENT: __ _. •- -- " -- Recycling -'' 15.436• "- 117.08fi 14,300 __ 131.386 146,822 146,822 -- 146.822 -- Cemetery HUNK DEVELOPMENT: Parks f Recreation 47.777 681.549 134,220 -- fi17.800 609,5 2 609,502 -- -- 863,546 609.502 -- -- Library (8.298) 578.685 55.367 79.115 3,500 -- -- 58.067 58.867 58.867 __ 58.867 100.000 -- Senior Center '- --a 100.00 -- 100.000 100.000 -• 100.000 CONTINGENCY: $1,392,567 $4,956.4811 f 2,718.677 (2,296.173 S 9.971,527 $11.784,094 f 9.558,459 3 450,049 510,016.508 $1,347,586 SUBTOTAL DEBT SERVICE: (293.861) 1,500,fi48 -- 341,886 1.842.534 1,548.673 1.504,123 4,101,635 -- 520.157 1.504.123 /,621,788 44,550 1.450,696 CAPITAL PROJECTS: 1,450.696 -- 4.389,957 231,875 4,621.788 6.072,184 ENTERPRISE: 471.056 -' 734.940 -- 734.940 1,205,996 457,641 763.188 1.220.829 342.665 (14,837) 851.760 Parking Operations Parking Reserves 719,059 -- 75 700 402.666 478.366 968,000 1,197,425 1.374.506 342,665 5&,171 -- 432.821 1.016.991 357,512 Sower Operations 406.506 215.263 -" "- 968 16.500 _ 137.825 154,325 369,588 101,825 11193:462 -- 569,255 101.825 1.762.717 267,763 187.342 Sewer Reserves Yater Operations 233.109 -• 1,716 950 -- 349,548 1.716,950 414.548 1,950,059 1,029,084 231,048 50,000 281,018 710_0 36 Yater Reserves 614,536 125 -- - 65.000 240.000 160.697 408,697 400,822 376,464 22.358 400.822 131-259 28,229 Refuse Operations Landfill Operations 120,788 -- 341.700 -- 341.700 462.488 377-101 56,858 169.480 Landfill Reserves 124.188 5,000 43.552 10,000 76.192 45,000 119,744 169,480 119,744 119.744 -- 119.744 -- -- 81.661 Airport Operations Airport Reserves -' 74,661 -- 7.000 -- 10.908 7,000 1.152,172 81,661 1,124,208 -- 1,124,208 -- 1.121.208 -- TRUST 6 AGENCY: (27.964) 1,006,264 135.000 SPECIAL REVENUE: 775.000 775.000 775.000 1,386.668 775,000 -• 1,408.148 775.000 1.108.418 -- (21:780) RodUse Tax 21,780) -- 1.108.448 -- 1.408,448 604.000 590,439 __ 590.139 590.439 Revenue Sharing (13,561 -• 604.000 S14,245,41654.047,930 -- S25.756.739 1]1.722.419 t?0.R44.PA6 $4.871.571 s c•7� Sycnl TOTAL $5.465,680 $7,463,393 The 06-30-80 balance of $6.616 In Recycling was closed out and transferred to the Cemetery balance. The 06-30.80 balance of $(305.247) in contingency was closed out and transferred to the Administration balance. MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS a DES MOINES u 1' V 41 ■ City of Iowa City MEMORANDUM Date: February 28, 1980 To: City Manager and City Council From: Mel Jones, Budget Administrator Re: Addendum to FY81 Budget -in -Brief The City Council has voted not to levy a transit tax for FY81 and this levy will not be included in the total tax levy requested. The new tax levy will be 12.519. Also, funding for the wastewater treatment facility - $3,405,000 - was inadvertently left out of the Capital Projects Fund total. The total Capital Projects Fund amount should be $4,621,788. bdw4/13 - --_ ....,..__._� .—._.__.__ __..._....._..._._.. 5W MICROFILMED BY JORM MICR+LA6 CEDAR RAPIDS • DES MOINES i BUDGET -IN -BRIEF REVENUES The City's property tax request for FY81 will be $7,522,628*, allocated as follows: FY80 Assessment Dollars Per $1.000 FY81 Assessment Dollars Per $1.000 General Fund 4,448,270 8.100 4,840,154 8.100 Transit Levy --- --- 59,235 .100 Tort Liability 263,306 .484 110,544 .187 Debt Service 952,851 1.752 1,500,648 2.533 Trust & Agency 596,327 1.096 1,006,264 1.699 Subtotal 6,260,754 11.432 7,516,845 12.619 Ag. Bldgs. & Land 6,308 3.004 5,783 3.004 Total 6,267,072 7,522,628 *Includes monies and credits of $28,416 and military credit of $13,715 in both FY80 and FY81, and an additional transit levy of ten cents per thousand of assessed valuation ($59,235) in FY81. This levy of 12.619 reflects an increase in the tax rate required for FY81 and represents $421.94 per year on the assessed value of the average residential property in Iowa City. As of January 1, 1979, the City Assessor computed the average assessed value for residential property, after the rollback, to be $33,437. This compares with the prior year's assessed value of $30,158. The total assessed value upon which taxes are levied in Iowa City has increased from $543,967,758 to $592,348,513 as of January 1, 1979. City services are financed from many sources and these sources have limitations both as to amount and use. The General Fund property tax levy can be used for the support of General Fund services, such as police, fire, park and recreation services. The levy cannot exceed $8.10 per $1,000 of assessed valuation. However, Chapter 384.12 provides for the levying of additional taxes to support specific municipal operations. In FY81 a ten cent levy will be imposed to support the maintenance and operation of the transit system. Authority for this levy is provided under Chapter 384.12(10) of the Code of Iowa. MICROFILMED BY JORM MICR+LA6 CEDAR RAPIDS • DES MOINES 2 r As in FY80, the City's assessed values (the values upon which the property tax levy is based) are being subjected to a rollback. In FY80 this rollback was .782516 on residential property and for FY81 the rollback will be .643801 on residential property. The state legislature has passed additional legislation that would impose a further rollback on certain commercial and utility properties. This rollback is .889872 and will mean a further reduction in the rate of increase in the City's property tax revenue. The City will also receive revenue from taxes on agricultural land. As provided by state law the tax on this land is 3.00375 per $1,000 of assessed value. The assessed value for ag land is $1,925,140 and will yield revenue of $5,783. In FY81, $4,857,258 in property tax revenue (the General Fund levy amount plus the total transit levy shown above, net of monies and credits and military credit) in the General Fund has been allocated. The General Fund property tax levy is an increase of 10.2 percent over the FY80 State -approved budget of $4,406,139. (The FY80 General Fund levy amount net of monies and credits and military credit.) Consistent with the practice of previous years, all revenue estimates are conservative. In budget preparation it is important to ensure that the level of revenue projected will actually materialize. Another source of revenue that can be used for General Fund operations is the monies and credits replacement fund. Formerly a State law levied a tax on certain monies and credits and monied capital. This tax was repealed and the State established a replacement fund which provides to cities the same amount of revenue they were receiving at the time the tax was repealed. In FY81, the City will receive $28,416. A military service credit replacement has been established which returns to cities part of the property tax lost through the military service tax credit. In FY81, this fund will return $13,715 to Iowa City for General Fund purposes. These monies are apportioned to cities by the State Treasurer in proportion to the money allocated by the State for the military service tax credit. The City also levies property tax for other purposes. These include debt service, trust and agency, and tort liability. These funds can be utilized only for the purpose for which they are levied. The debt service levy provides funds for the payment of the principal and interest on general obligation bonds of the City. It can also be utilized to fund the payment of any judgments against the City, unless other funding sources are provided by State law. A special property tax levy is established for the payment of pension and related employee benefits. These include social security, the Iowa Public Employees Retirement System, and the Police and Fire Pension . contributions of the City. r MICROFILMED BY JORM MICR+LA9 CEDAR RAPIDS • DES MOINES 3 A special levy, tort liability, is provided to pay the cost of certain insurance coverages. This includes comprehensive general liability, motor vehicle liability, public official liability, errors and omissions and false arrest insurance. The tort liability levy of $110,544 reflects the cost of insurance premiums, deductibles and anticipated judgments and damages for FY81. Assistance from other governmental agencies is a major source of revenue. This includes both Federal and State assistance. 1. The bank franchise tax is a state tax levied on net income of financial institutions. The state retains 55% of this tax with the remainder divided 60% for the cities and 40% to the county within which it originated. The FY81 receipt projection is based on actual receipts in FY80 of $46,270 and information received from local banks. ($60,000) 2. The State legislature approved special funding for benefits under HF914 for Police and Fire Retirement systems. Iowa City will continue to receive annually the FY81 budgeted amount until future legislation changes or ends this funding. ($50,008) 3. State Transit Assistance is state funding to local governments to assist in the operation of municipal transit systems. The City of Iowa City uses these funds for the operation and maintenance of the Transit Division. ($200,000) 4. Liquor profits are 10% of gross revenue of State liquor stores. In FY80, the estimate equaled $5.24 per capita and in FY81 the estimate is $5.75 per capita. ($274,528) 5. State Municipal Assistance distributes state revenues on a ratio of each city's population to total state population, which can't exceed one-half of the city's property tax levy. The FY81 projection is based on $6.17 per capita. ($294,580) 6. General Revenue Sharing is received by the City quarterly and the budget amount is based on funding throughout FY81. However, present legislation has authorized General Revenue Sharing through September 30, 1980 or the first two quarters of FY81. Pending legislation will determine if the program will be extended for another three year period. (City expects $594,000 in FY81 if the program is extended). 7. Road Use Tax collected by the State from the registration of motor vehicles, fuel tax, license fees and the use tax on motor vehicles, trailers and accessories and equipment is apportioned to each city on a ratio of the city's population of all Iowa cities. The per capita estimate for FY81 is $29.50. This is $2.60 less than the FY80 per capita estimate. Although more cars are being licensed, they are fuel economy models which have reduced gasoline sales. ($1,408,448) MICROFIL14ED BY JORM MICR+LA9 CEDAR RAPIDS • DES MOINES �a 4 Anticipated revenue of $3,144,500 from enterprise funds which include parking, sewer, water, refuse, landfill and the airport utilities or services supported primarily from revenues for services provided. In addition, parking, sewer and water revenues are used to pay bonds and interest on revenue bond issues of the City. In FY81, $223,136 of sewer revenue and $118,750 of water revenue will be transferred to pay general obligation bond issues which were sold to finance sewer and water projects. The Sewer revenue increase from 1979 actual receipts allows a 2% growth rate per year in anticipation of new housing starts. Water revenue has shown a strong 8% growth rate in FY79 and the first quarter of FY80 which should continue through FY81. Refuse collection will remain at the FY80 level of $2.00 per month per dwelling unit or apartment and $1.00 per month per sleeping room. Landfill fees will remain at $5.10 per ton in FY81. Other charges for services total $931,815 for the General Fund. The Fire Protection Contract ($225,000) provides service for the University of Iowa, and the Library services include $53,515 for services to Johnson County. Bus fares will increase from 254 to 354 and monthly bus passes will increase form $8 to $12 resulting in total fare revenue of $619,000 in FY81. Recreation revenue includes $61,000 for admissions and lessons, $19,000 from entry fees and $13,000 from family and group pool sales. Miscellaneous revenue is derived from police escort service, animal control fees, zoning and subdivision fees and other miscellaneous items. In FY81, revenue from licenses and permits is budgeted at $234,600. Most of this revenue will come from building permits and beer and liquor permits and licenses. Other sources of revenue are bike, peddlers, electricians, plumbers and animal licenses and burial permits. The FY81 budgeted revenue from fines and forfeitures of $335,500 reflects $122,500 for $5.00 illegal parking fines, and $122,500 for $2.00 overtime parking fines. Library fines are assessed for overdue or damaged property and fines from Magistrate Court are for collection of fines assessed for violation of the City or State codes such as motor vehicle violations and animal control violations. Use of money and properties will yield $990,647 in FY81. Revenue from investments has become an important source of revenue reflecting interest rate increases from 7.5 percent to 9 percent in FY79 to 13 percent in mid-FY80. The FY80 budget will be below actual receipts because of variance in interest rates. The budgeted amount was based on an anticipated market yielding an average 11 percent rate in FY81. Use of property includes parking revenue for metered and attendant lots totalling $554,000 and revenue from rental of properties totalling $38,822. It also includes rental of lockers, shelters and garden plots. An additional $300,000 interest income will be realized from investments in the Capital Projects Fund. SOS' MICROFILMED BY JORM MIC R�LAB CEDAR RAPIDS • DES M01PIES I Miscellaneous revenue is estimated at $129,150 in FY81. Miscellaneous revenues are composed of refunds; reimbursement of expenses and damages; miscellaneous sales; mass transit advertising; sale of grain and commissions or concessions. The reason for the increase from FY80 to FY81 is that workmen's comp reimbursements were not included and we did not budget as conservatively on reimbursements and refunds. MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES II 1( II 6 EXPENDITURES The recommended budget for all funds in FY81 is $22,316,417, which includes $1,216,788 in capital improvements. The proposed general fund budget is $10,016,508 or an increase of 6.4% over the amended expenditures for FY80. A comparison of percentage change by major classification of expenditure appears below: Actual Amended Percent Budget Percent FY79 FY80 Change FY81 Change Personal Services $4,803,910 $5,336,338 11.0 $5,961,170 11.7 Commodities 589,217 494,688 (16.1) 515,853 4.3 Services & Charges 2,219,720 1,960,662 (11.7) 2,443,058 24.6 Capital Outlay 373,599 803,637 215.0 763,378 (5.0) Transfers 491,640 818,189 66.4 333,049 (59.3) TOTAL $$8478 086 $9,413,514 11.0 $10,016,508 6.4 Budget increases in the General Fund expenditure budget were minimized as much as possible because of limited revenues in the General Fund. Substantial cuts were made to all budgets submitted by City Departments in order to arrive at a balanced budget for FY81. Because of the magnitude of the budget cuts, the General Fund activities will be providing services at a somewhat reduced level as compared to past years. Personal Services In the FY81 General Fund budget, budget cuts resulted in the elimination of 25 full-time positions and approximately $90,000 of temporary and overtime salary costs. Personnel costs are primarily controlled by collective bargining agreements. Employees of the City :are representated by three unions: AFSCME (Local 183), the Iowa City Police Patrolman's Association, and the International Association of Firefighters (Local 610). The majority of City employees are represented by AFSCME. The Union is comprised of two bargaining units, one composed exclusively of Library employees and the other composed of City employees in all other departments. All supervisory, confidential, temporary and other employees who are excluded by law in Chapter 20 of the 1979 Code of Iowa are excluded from the units and from the terms, conditions, or application of the Agreement. Sworn police officers and firefighters are also excluded. The AFSCME contract will be effective between July 1, 1980 and June 30, 1981, inclusive. The contract provides for an 11% cost of living adjustment to the pay plan on July 1, 1980. MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES 6 7 n Sworn police officers are represented by the Iowa City Police Patrol- man's Association. The bargaining unit is composed of all Iowa City police officers. Exempt from the unit are the police chief, deputy chief, captains, sergeants and other confidential, administrative, supervisory and less than half-time employees, and those excluded by Chapter 20, Code of Iowa. The contract is presently being negotiated. The firefighters are represented by the International Association of Firefighters. The bargaining unit is composed of firefighters, lieu- tenants, and captains. Exempt from the unit are the fire chief, fire marshal, training officer, battalion chiefs and other employees excluded by Chapter 20. The contract will be effective between July 1, 1980 and June 30, 1981, inclusive. The contract provides for an 11% increase to the pay plan on July 1, 1980. The settlement also provides for a quarterly cost of living escalator, based upon certain changes in the Consumer Price Index. Because one of three union contracts has not been settled as of this writing, a collective bargaining contingency reserve has been estab- lished in the general fund to offset any unexpected costs resulting from the settlement. Employees who are administrative, supervisory or otherwise ineligible for collective bargaining are covered by the Personnel Rules and Regula- tions. Some are eligible for Civil Service. Salaries and benefits are determined by the City Council upon the recommendation of the City Manager. Guidelines for increases are set by the City Manager with the amount of the increase determined by the department head, with the approval of the City Manager. Other Expenditures Commodities, Services and Charges, and Capital Outlay continue to be affected by inflationary increases. Budget cuts made in these three areas demonstrate a hold -the -line effort while attempting to minimize service level reductions. Included in Services and Charges is the budget for Aid to Agencies which was decreased in FY81 as shown by the following: MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES Sl�S V �1 8 City Council City Council City Council Authorization Authorization Authorization Agency FY79 FY80 FY81 JCRPC $ 65,897 $ 75,195* i Mayor's Youth 21,271 23,133 I� E , Youth Homes Inc. 1 8,000 a UAY x 30,000 30,000 PALS 11,893 13,763 15,500 Rape Victim Adv. Prog. 6,081 9,515 p V �1 8 MICROFILMED BY DORM MIC R;LAB CEDAR RAPIDS • DES MOINES SoS I City Council City Council City Council Authorization Authorization Authorization Agency FY79 FY80 FY81 JCRPC $ 65,897 $ 75,195* $ 52,000* Mayor's Youth 21,271 23,133 20,000 Youth Homes Inc. 8,000 8,000 ----- UAY 27,327 30,000 30,000 PALS 11,893 13,763 15,500 Rape Victim Adv. Prog. 6,081 9,515 9,515 J.C. Council on Aging 18,550 19,800 ----- Babe Ruth League 1,200 1,284 1,100 Boys Baseball, Inc. 1,200 1,284 1,100 Girls Softball 1,200 1,284 1,100 Mark IV 5,000 5,615 4,800 Children's Museum 2,000 2,140 ----- Crisis Intervention Ctr. 3,000 5,000 5,000 Crisis Ctr. - Trans. ---- 2,500 2,500 Senior Citizen Services ---- ---- 20,000 $ 172,619 $ 198,513 $ 162,615 * - This amount includes funding of $7,000 for the Human Services Program. ** - $1,100 is to be budgeted under Recreation for a local match for Federal funding of an equal amount. MICROFILMED BY DORM MIC R;LAB CEDAR RAPIDS • DES MOINES SoS I 1 i I 0 �, CITY OF IOWA CITY ALL FUNDS COMPARISON BUDGET FY80 AND PROPOSED FY81 BUDGET PROPOSED FY80 FY81 % CHANGE GENERAL FUND City Council $ 239,483 $ 217,815 ( 9.0) City Manager 111,499 110,394 ( 1.0) City Clerk 93,854 74,283 (20.9) City Attorney 122,436 134,983 10.2 Human Relations 96,398 128,877 33.7 Finance 624,558 575,031 ( 8.0) Planning & Program Dev. 142,288 159,974 12.4 Public Works Administration 52,379 54,098 3.3 Engineering 245,559 274,193 11.7 Traffic Control 383,887 432,273 12.6 Mass Transit 982,092 1,271,651 29.5 Street System 1,173,666 1,185,309 .9 Housing & Inspection Services 188,871 248,043 31.3 Police 1,260,182 1,454,319 15.4 Fire 923,506 1,013,145 9.7 Parks & Recreation 1,090,280 1,237,913 13.5 Library 520,894 609,502 17.0 Senior Center 45,560 58,867 29.2 Energy Conservation 7,735 23,290. 301.0 Broadband Telecommuni- cations - 24,765 N/A Transfers 247,763 333,049 34.4 Contingency 557,185 100,000 (82.1) Tort Liability 263,306 294,734 11.9 Recycling 40,133 - N/A TOTAL GENERAL FUND $ 9,413,514 $10,016,508 6.4 Debt Service Fund 1,609,016 1,504,123 ( 6.6) Capital Projects Fund 23,693,860 1,216,788 (95.0) Enterprise Funds 6,407,631 5,680,903 (11.4) Trust & Agency Fund 877,512 1,124,208 28.1 HCDA 1,254,941 775,000 (38.3) Road Use Tax 1,752,378 1,408,448 (19.7) General Revenue Sharing 1,004,494 590,439 (41.3) Special Assessment 40,600 - N/A $46,053,946 $22,316,417 51.6 MICROFILMED BY JORM MICR(�LA13 CEDAR RAPIDS • DES MOINES 10 CAPITAL IMPROVEMENTS - FISCAL YEAR 1981 EXPENDITURES I Wastewater Treatment Facility $ 3,405,000 Scott Boulevard Phase II150,000 CBD Alley Project 30,000 Extra -width Paving 30,000 Dubuque/Church Signalization 15,000 Melrose Avenue Corridor Traffic Improvements 50,000 North Branch Detention Structure 20,153 Equipment Service Building 96,160 Bus Stop Shelters 24,000 Civic Center Heating, Ventilation, Air Conditioning 13,475 Civic Center Roof Repair 88,000 Small Cities Sub -total S 4,621,788 Lower Ralston Creek Channelization Improvements 775,000 TOTAL EXPENDITURES % 5,396,788 I RECEIPTS Bonds Federal Aid 1,661,153 State Aid 2,556,150 650 General Revenue Sharing 172 47 675 Operating Revenue 184,160 HCDA 775,000 TOTAL RECEIPTS $ 5,396,788 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES W i; i F P \� Ij a' 10 CAPITAL IMPROVEMENTS - FISCAL YEAR 1981 EXPENDITURES I Wastewater Treatment Facility $ 3,405,000 Scott Boulevard Phase II150,000 CBD Alley Project 30,000 Extra -width Paving 30,000 Dubuque/Church Signalization 15,000 Melrose Avenue Corridor Traffic Improvements 50,000 North Branch Detention Structure 20,153 Equipment Service Building 96,160 Bus Stop Shelters 24,000 Civic Center Heating, Ventilation, Air Conditioning 13,475 Civic Center Roof Repair 88,000 Small Cities Sub -total S 4,621,788 Lower Ralston Creek Channelization Improvements 775,000 TOTAL EXPENDITURES % 5,396,788 I RECEIPTS Bonds Federal Aid 1,661,153 State Aid 2,556,150 650 General Revenue Sharing 172 47 675 Operating Revenue 184,160 HCDA 775,000 TOTAL RECEIPTS $ 5,396,788 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES W i; i SUMMARY Of EIPCNUIIURLS AND RLCEIPTS� 61NfRAL FUND _2 FISCAL YEAR 19804981 CITY Of IOWA CITY 9 WHERE THE MONEY COMES FROM FYBI RECEIPTS _$ Property Taxes 5.015,716 50.2 License and Permits 236,980 2.4 Fines 6 Forfeitures 215,400 2.2 Charges for Services 1,083,055 10.9 Intergovernmental Revenue 968,858 9.9 Use of Money 6 Property 79,870 .8 Miscellaneous Revenue 114,510 1.1 Transfers 2,248,690 22.5 10.717.476 100.0 / CHARGES FOR THE MONEY FOES - SERVICES FYbl EXPENDITURES 10.9 t FY81 EXPENDITURES 5 N3SCELIANFAUs REVENUE PROPERTY TAR City Cuuncil 1.1 2.2 Hs9. 6 Inspection Servs. 248,043 USE OF MONEY 6 50.2 City Manager PROPERTY .8 1.1 HTERGOVERNIRNTAL 1,454.319 14.5 REVENUE City Clerk 74.283 9.9 Fire 1.013.145 CHARGES City Attorney FOR SERVICES 1.4 Parks S Recreation 10.9 12.4 LICENSES A PER11175 .4 FINES 4 FORFEITURES 2.2 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS r DES MOINES :r 0 .. w WHERE THE MONEY FOES - FYbl EXPENDITURES S t FY81 EXPENDITURES 5 2 City Cuuncil 217,615 2.2 Hs9. 6 Inspection Servs. 248,043 2.5 City Manager 110.394 1.1 Police 1,454.319 14.5 City Clerk 74.283 .8 Fire 1.013.145 10.1 City Attorney 134.983 1.4 Parks S Recreation 1,237,913 12.4 Human Relations 128,877 1.3 Library 609,502 6.1 Finance 575.031 5.7 Senior Center 58,867 .6 Plan S Program Dev. 159,974 1.6 Energy Conservation 23,290 .2 Public Works: Broadband Tele. 24.765 Administration 54,098 .5 Transfers 333.049 3. Engineering 274,193 2.7 Contingency 100.000 1.0-- _ Traffic Control 432,273 4.3 Tort Liability 294.734 2.9 Mass Transit 1,271,651 12.7 Street System 1.185,309 11.8 10.016.508 1�.0 .2} P WCis R .l V V 99 yUy Cry K F yZy F in ATTORNEY 1.4 '3 REIATIONS 1.3 SENIOR CENTER .6 PUNNING a PROGRAM DEV. PIRANCE 1.6 LIBRARY 5.7 - OBLiC WORKS ADMIN. .5�� - 6.1 ENGINEERING 2.7 TRAPF CONTROL 4.3 PAPKS 4 RECREATION 12.4 HASS TRANSIT 12.7 FIRE 10.1 STREET SYSTENI POLICE 14.5 11.8 HOUSING 4 INSPECTION SERVS. 2.5 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS r DES MOINES :r 0 .. w s City of Iowa City MEMORANDUM DATE: February 21, 1980 TO: The Honorable Mayor, City Council Members and Neal Berlin, City Manager FROM: Linda McGuire, Chairperson, Iowa City Human Rights Commission' RE: Staffing Reductions As you finalize your considerations of budget cuts and staffing reductions for fiscal year 1981, the Iowa City Human Rights Commission asks you to bear in mind our essential staffing needs. In the past, the Commission has requested additional staffing of Council to assist with our work - namely investigating compliants of discrimination. While we recognize tight budgetary constraints make this increase improbable at this time, we ask that you recognize our present situation and critical need, and that you retain our current level of staffing. LMG/sam MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES ■ TO: FROM: RE: City of Iowa City MEMORANDUM DATE: Feb. 25, 1980 Mr. Mayor and Members of the Council Robert P. Keating, Fire Chief ,# Housing Inspections Housing inspections were discussed briefly the night of my department's budget hearing. I told Council that night, if the Fire Department was to do housing inspections to any extent some things would have to give in other areas. I feel this would mean a substantial reduction in the number of Fire Inspections. However, there is one area where we cannot reduce the number of fire inspections. We are obligated by contract with the University to Provide bi-annual inspections of all University buildings as well as fire protection services. For this the City will receive approximately $325,000 this year. This amount increases each year as new buildings are built. Depending on the work load it may be necessary to cut back on fire training for fire brigades at our hospitals and factories. In addition to this, in light of the personnel cuts made in the Fire Department it may be necessary to discontinue the First Responder service so as to ensure adequate and immediate response to fire emergency calls. MICROFILMED BY JORM MICR+LA9 CEDAR RAPIDS • DES MOINES W 1. p E i At this time I don't fully comprehend what the transfer of these duties will mean. I am sure there will be days when housing inspections cannot be made due to certain circumstances that will arise. The primary purpose and responsibility of the Fire Department is to be properly prepared at all times to respond immediately to fire and related emergency calls. This is the direction in which I intend to proceed. Preparedness for fire emergencies at all times comes first. 1 MICROFILMED BY -. A.. JORM MICR+LAB CEDAR RAPIDS • DES MOINES 5-07 I i r r AAPORT/mNT NOTICE ALL MEMBERS I.C.F.D. 1 it w` YOU ARE ENCOURAGED BY LOCAL 610 TO ATTEND THE CITY COUNCIL MEETING TUESDAY MARCID, 1980 AT 1930 HOURS. A BIG TURNOUT IS AN ABSOLUTE NECESSITY op, / �4 THIS CONCERNS THE LAYOFFS ONG�� TIIE F[RC DEPARTF1E21T. THE LAYOFFS WILL IIAVL AN ADVERSE OF THE DEPARTMENT. EFFECT ON EACH AAD EVERY MEMBER t ]1 a; a Iq ri } Ji AAPORT/mNT NOTICE ALL MEMBERS I.C.F.D. 1 it w` YOU ARE ENCOURAGED BY LOCAL 610 TO ATTEND THE CITY COUNCIL MEETING TUESDAY MARCID, 1980 AT 1930 HOURS. A BIG TURNOUT IS AN ABSOLUTE NECESSITY op, / THIS CONCERNS THE LAYOFFS ONG�� TIIE F[RC DEPARTF1E21T. THE LAYOFFS WILL IIAVL AN ADVERSE OF THE DEPARTMENT. EFFECT ON EACH AAD EVERY MEMBER t THE MEMBERS OF TIIC FIRE DEPARTMENT MUST PLACE BEFORE THE COUNCIL THEIR SIDE OF THE LAYOFF ISSUE. WE NEED EVERY OFF DUTY MEMBER OF THE DEPARTMENT AT THE MEETING TO SHOW OUR UNITY. D. LONEY WILL ACT AS OUR SPOKESPERSON. NATHAN B. HOPKINS PRESIDENT, LOCAL 610 MICROFILMED BY JORM MICR+LA6 C CEDAR RAPIDS • DES MOINES i, 50� i I:lllllbIf4r Ml Mill le. n��+�.i. ri'ixuw:eu.Y, �wuuA rx Ar..r, lrxprr.,.nxl fI1FUIIN MI. n I%rmlrvY. Nl :.rr.n. ll.r.u,r Ir+.. llxr„(III INI Ir�iiL,l dlrvnr;MiM1 IAII luuwA I,.. M1nil. 1/ I.J Irx Li,Iri+l 11+Mx^rn+L !•+rix ln!,nrrxp I:A l ,u lrn l:A. Mvxxr.A l4ryinA. I:un4Yy+ul YA In nlyAxr b IlxpWih Ilnrvn 1:11 14 Allb� rlinllnn, llunl�n I% :niu. ;.I iierxuinwver.n In nor. Irx., IMurx f.0 RECEIKEU 30 C x )ni_tTiON tc> SAVE OUR ”` FICA TAXES Suite 310 5001 Seminary Road Alexandria, VA 22311 703.379-2838 MICROFILMED BY JORM MICR+LA6 CEDAR RAPIDS • DES MOINES February 14, 1980 i� Coalition Members and Small Business/Agriculture, Nonprofit Institutions, Public and Sector Organizations I -'ROM: Paul Suplizio, Washington Representative SUP.]F.CT: FICA Tax Incentive Under Senate version of H. R. 37.36 8y a voeo of 60 to 27 the Senate has approved and amended version of Section 507 of If. It. '1236 which contlnuen a,tax savings for employer payments of employee FICA tuxes IOr L'1.•rLa(n defiMd INI gCOIIpN• Starting With what Was on December I conmidered a loss cause, our coalition along with the National i Association of Counties and the American Hospital Association worked long and hard for passage of this compromise version of the original Senate proposal which would have eliminated the tax saving entirely. Our position received valuable support from the American Farm Bureau Federation which amended its Social Security policy statement at its 1980 Annual Fleeting in Phoenix to support employer payments of the FICA tax on behalf of employees. t? The new Senate version a copy f which is attached, an Social Security tax incentive ninstitutions, andtinues for small businesses, non-profit Public p organizations. Most farmers are included by virtue of their qualifying as small business. These organizations and their employees retain the option for employer payments of the employees share of the Social Security tax, which results in an overall 6% FICA tax saving. The Amendment which passed the Senate was offered by Senator Thurmond and co-sponsored by Senators Dole, Helms, Armstrong, Hatch and Pressler. We are much indebted to these men and their staffs for their assistance and Support. Our first order of business should be to acknowledge this debt by writing and phoning our thanks to them and to all the senators who voted for the Thurmond amendment. An extract of the Congressional Record containing the Senator Thurmond's address and attached. results of the role call vote Is li ci I We mast not relax our efforts, however, because one final hurdle remains to assure adoptlo❑ of the Senate version of Section 507 in the forthcoming Senate -(louse conference on II. R. 3236. If we prevail in the conference, then final passage of the bill by both houses and its signature by the President is assured. I (over) QL-7 J _ MICROFILMED BY JORM MICR+LA6 CEDAR RAPIDS • DES MOINES Thr Sona Lo ru[If crvoa Iinve born ;ippnlnlyd and tiro Isit] lrntrd In nn nluu•Innrul. The Mundt' rIts lrrorI hnve no( yrl born d -It fy,III lyd. Thr III•:cl mrating of the Cunlcreace Conunittev r•,a rutin•;rt tiny time after tilt• Montle runfereca are appointed, so prompt actlun is required if our efforts are to be effecLlve. You can help by taking the following important actions: (1) Join our coalition if you are not already a member. Use the tear off sheet below. (2) Thank those who have helped us so splendidly. Write special letters of thanks to the following Senators who co-sponsored the amendment which passed the Senate (Honorable __, Senate Office Bldg. ,Wash. ,D.C. 20510) J. Strom Thurmond Robert Dole I Jesse helms Bill Armstrong Orrin Hatch Larry Pressler In addition, write thank you's to your own Senators who voted for the ( amendment (See attached list at the end of Senator Thurmond's speech). (3) Write and telephone the Senators who have been designated as Senate conferees on the bill (indicated by an asterisk on an attaclunent). Tell tilt, Ieglslative aide that you aro calling to urge the Senator to do all he can to gain (louse acceptance of the Senate passed version of Section 507 In rnnference. Ask what the Senator's views are on this matter, and If possible obtain it commitment.. Do not ausume that because fills amendment was passed by the Senate, the Senate conferees are ohllged to support It. They can Lake any position they wish. ,1n the case,of long and Rlhicoff, they are decidedly opposed to the Senate version at the present time. We need to convince them to ncccl)t the Senate compromise. Write and call the members of. the House Ways and Means Committee and representatives from your state (See attachment and concentrate on the key Congressmen and members of Social Security Subcommittee). Urge these individuals that, if appointed to the Conference Committee on H. R. 3236, they support the compromise version of Section 507 concerning employer payment of employee FICA taxes that was worked out in the Senate. Ask them to take a careful look at the material sent them by the Coalition to Save Our FICA Taxes, and if they have any questions to getin touch with our Washington Representative (Paul Suplizio, (703) 379-2838). Ask the other members of the Ways 6 Means Committee from your state for their support and, if supported, ask them to be surd to wrltt, and spook to Chairmtin Ullman, Clullrmnn I'Ickle, Mr. Conahlc, and Mr. Archer and argv them to arrrpt the tousle rnmprumlao In conference. I He sure you send copies of ai.l correspondence you send, and all repLieB you recelve, from tiny of these congressmen to our Washington Representative: Paul Suplizio, 5001 Seminary (toad, Suite 310, Alexandria, Virginia 22311. This is very important. To all those who assisted in our Senate victory, a sincere THANK YOU. We need your con- tinued support and thatof new members to continue our advocacy for a fair and sound Social Security system. For all who hnvo nsked, we've encloned a Harvard Business Review article on haw thin tar. Incentive works. IJ v U7 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS - DES MOINES n We at Paul Suplizio Associates are proud to serve as your representative in Washington, and proud of the success achieved thus far. Thanks to everyone for your supportl Please do not hesitate to call upon us if we can be of assistance. One or two hours of your time now, will mean the preservation of an important Social Security tax incentive. You, your employees, and your organization will benefit. ADDRESS CITY,STATE,ZIP POSITION MICROFILMEDE JORM MIC CEDAR RAPIDS • D 1 I 1 COMMITTEE ON WAYS AND MEANS MemberLefisl—ative Asst. s N Telephone n Al Ullman, Chairman L Oreg. R. ❑j ii 1 y. (202)225-4061 Charles A. Vanik 1' Ohio C: COMMITTEE ON WAYS AND MEANS * Indicates key Congressman who could be chosen as a H. R. 3236 conferee ** Indicates member of the House Subcommittee on Social Security MICROFILMED BY JORM MICRLA13 CEDAR RAPIDS • 0 ES MDIMES 509 MemberLefisl—ative Asst. State Telephone * Al Ullman, Chairman d Arner Oreg. (20f7275- =7 Dan Rostenkowski Mark Micali 1ll. (202)225-4061 Charles A. Vanik Brian Gonchei Ohio (202)225-6331 James C. Corman Gary Capistrant Calif. (202)225-5811 Sam Gibbons Flora Sullivan Fla. (202)225-3376 ** J. J. Pickle Janice Gregory Tex. (202)225-4865 Charles B. Rangel William Signer N.Y. (202)225-4365 ** William R. Cotter Bill Cunningham Conn. (202)225-2265 * Fortney H. (Pete) Stark Eugene Gessow Calif. (202)225-5065 James R. Jones Ruth Smith -Barrett Okla. (202)225-2211 ** Andy Jacobs, Jr. Judy Aitken Ind. (202)225-4011 ** Joseph L. Fisher Joy Silver Va. (202)225-5136 Harold E. Ford Francis Canavan Tenn. (202)225-3265 Ken Holland John Winburn S.C. (202)225-5501 William M. Brodhead Michael Schwarts Mich. (202)225-4961 Ed Jenkins Victoria Gunn Ga. (202)225-5211 ** Richard A. Gephardt John Crosby Mo. (202)225-2671 Raymond F. Lederer Richard Connor Pa. (202)225-6271 Thomas J. Downey Toby Meisiel N.Y. (202)225-3335 Cecil (Cec) Heftel Agnes Dover, Hawaii (202)225-2726 Wyche Fowler, Jr. Gordon Raeburn Ga. (202)225-3801 Frank J. Guarini Sharon Cranford N.J. (202)225-2765 James M. Shannon Chuck Brain Mass. (202)225-3411 Martin A. Russo Ed Page I11. (202)225-5736 * Barber B. Conable, Jr. Margie Vanderbilt N.Y. (202)225-3615 John J. Duncan Mike Scrivner Tenn. (202)225-5435 ** Bill Archer Don Carlson Tex. (202)225-2571 Guy Vander Jagt Peg Martin Mich. (202)225-3511 Philip M. Crane Nancy Fox I11. (202)225-3711 Bill Frenzel David Rosenauer Minn. (202)225-2871 James G. Martin Larry Bowles N.C. (202)225-1976 L. A. (Skip) Bafalis Adair Atwell Fla. (202)225-2536 Richard T. Schulze Harry Burroughs Pa. (202)225-5761 ** Bill Gradison Drew Kling Ohio (202)225-3164 ** John H. Rousselot Sidney Olson Calif. (202)225-4206 W. Henson Moore Clete Uhlenhopp La. (202)225-3901 * Indicates key Congressman who could be chosen as a H. R. 3236 conferee ** Indicates member of the House Subcommittee on Social Security MICROFILMED BY JORM MICRLA13 CEDAR RAPIDS • 0 ES MDIMES 509 INCLUSION IN WAGES OF FICA TAXES PAID BY EMPLOYER Section 507:(a) Section 209(f) of the Social Security Act is amended to read as follows: "(f) The payment by an employer (without deduction from the remuneration of the employee) (1) of the tax imposed upon an employee under section 3101 of the Internal Revenue Code of 1954'(A) for wages paid for domestic service in a private home of the employer, 1:(B) if ouch employer is a. small business concern' as that term is employed in the administration of section 7(a) of the Small Business Act (relating to business loans), or (C) if such employer is a State or political sub- division thereof, or (D) if such employer is a private nonpro- fit organization, which is exempt from income tax under section Revenue Code arequired fromanunderoy a State unemploymentcom- pensationpay- ment law." (b) Section 3121(a),6) of the Internal Revenue Code of 1954 is amended to read as follows: "(6) the payment by an employer (without deduction from the remuneration of the employee) --- (c) The amendments made by this section shall be effective with respect to remuneration paid after December 31, 1980. MICROFILMED BY JORM MICRf�LAB CEDAR RAPIDS • DES MOINES SOT J , i j �1 INCLUSION IN WAGES OF FICA TAXES PAID BY EMPLOYER Section 507:(a) Section 209(f) of the Social Security Act is amended to read as follows: "(f) The payment by an employer (without deduction from the remuneration of the employee) (1) of the tax imposed upon an employee under section 3101 of the Internal Revenue Code of 1954'(A) for wages paid for domestic service in a private home of the employer, 1:(B) if ouch employer is a. small business concern' as that term is employed in the administration of section 7(a) of the Small Business Act (relating to business loans), or (C) if such employer is a State or political sub- division thereof, or (D) if such employer is a private nonpro- fit organization, which is exempt from income tax under section Revenue Code arequired fromanunderoy a State unemploymentcom- pensationpay- ment law." (b) Section 3121(a),6) of the Internal Revenue Code of 1954 is amended to read as follows: "(6) the payment by an employer (without deduction from the remuneration of the employee) --- (c) The amendments made by this section shall be effective with respect to remuneration paid after December 31, 1980. MICROFILMED BY JORM MICRf�LAB CEDAR RAPIDS • DES MOINES SOT J , �1 a s:l INCLUSION IN WAGES OF FICA TAXES PAID BY EMPLOYER Section 507:(a) Section 209(f) of the Social Security Act is amended to read as follows: "(f) The payment by an employer (without deduction from the remuneration of the employee) (1) of the tax imposed upon an employee under section 3101 of the Internal Revenue Code of 1954'(A) for wages paid for domestic service in a private home of the employer, 1:(B) if ouch employer is a. small business concern' as that term is employed in the administration of section 7(a) of the Small Business Act (relating to business loans), or (C) if such employer is a State or political sub- division thereof, or (D) if such employer is a private nonpro- fit organization, which is exempt from income tax under section Revenue Code arequired fromanunderoy a State unemploymentcom- pensationpay- ment law." (b) Section 3121(a),6) of the Internal Revenue Code of 1954 is amended to read as follows: "(6) the payment by an employer (without deduction from the remuneration of the employee) --- (c) The amendments made by this section shall be effective with respect to remuneration paid after December 31, 1980. MICROFILMED BY JORM MICRf�LAB CEDAR RAPIDS • DES MOINES SOT J , 106 CONGRESSIONAL IIECORD _ Mr. hbldiS. Air president I 1 SENATE • n lh- draw that request. this recommended modification. Fiat, thermrore, while I understand Tile PRSSiDtNG OFFICER. The re- quest has been wlthdranm• the concern that the members of the Fl nonce Committee have from SouthlCarollna lzes isle. theSenatorfor fund. the lhe moretthe l have situ dl duthty oust Y trust bP AncNosirur No. eel ter, the stronger Is my convlctl mat' ll'urp,aa: lteleuug to hmlusion In wngex of the Proposed chance Is both FICA III-concclvell ail polo by small business em- and also likely to be counterproductly: Playem State and local governments, and nonprofit orCcutzathms) on these particular millers. Mr, THURMOND.. Mr. President, send - amendment to the desk tont, the I Tile rice TAX nMON Mr' President, under the soclul slcu- send and Senators Ito IlASCo aria rity law. emPlol'ers slid CMPIOy'CC9 Share equally AneisrRoNc, and ask for Its Immediate !n the FICA tax obll¢atloa. conrldcrntlon, At the same time, employers )lave always The PTIESIDINO OM. CER. Th mnendmmltwlll had the option of Paying both the em• from,r and lestaled. Tilethe employer, oloyee wntfunds. without Tow nssclant IeCls]ative clerk ,cad ' fol fie any withholding from the employee's 'the Ecnatnr from south Carolina (Mr. 1 T,uhmaru), lar himself. mr Ile.,la, Mr. gents ales. Prior totheA 7 amend. I PATr. N. fir. AIlf.MTSOUG, Air, nntx, and me. few employers hall elected to bear tile Pnrs..i.cr. prmpo-,r, on unprinted entire F7CA tax burden. amendment rmmher'd 911 however, with the 1111331112111111 ax Increase put Into Mr. THURMOND. Mr. President, I ask effect by the 1¢77 amendments, more miff u»auimous ennsent that further reading 1 of ehc amendment be dispensed with. ¢ more employers have discovered and jaws which B The pRGRiD[NG 0I7:'ICER. Without obJectlnn, It Is to ordered. a110W8 p�nyef9iLtA assume the entire FICA ax obligation. The amend, Is hs follows: While the actual cnmpulatlans are a 6tri On par-,, Ino, strike out lies 0 through 21 andar6rlieu lof bit Complicated, basically the procedure calls for employees to forego a portion 5n71rp)rt 110 nh200(f)ereof the SOelhe atl Of It scheduled salary increase, Or reduce Encurlty Act Is amended to read as follows.. "I" their gross wage, by an amount equal to Tile payment by an employer (with= mil rmmAtinn from the rrmuneratlnn of the the FICA tax that otherwise would be withheld from the employee's on an empinyre)and r serllon ;CICof the tax U Of the Iosed nternal Revers" grope pay Workers slightly higher tain an Immediate benefit In ke-home Cod' of I"" (A) for wages paid for Ammetlle scales In a private home pay, because, under the Progressive Income e of tae busne sr, a err tIf rush employer to Viumill i firm tax ratC7, less State suit Federal !nt'.mnc tax Is requUed to be Paid. Employers Salh) administration nf section Isemployed of the 1e also 0 a p°)Toll con l fillings of approxl- e Rt j ce Act (relating to business Sns), nCI If elieh matelY g percent because the toclnl ase 1t January 01, 1.1180 Despite the appeal of such s paytull nye• leen It Imp act heen widely embraced by business. There's a long-standing provision to the Social Security Act that permits the tax to be computed to this fashion. but very few employers bele Implemented It, mainly be - cones Ago =0 knew anything about It:' told f°chael P• Melo, • partner with the account- IaC cone,,° of KIce Waterhouse i Compuly. 1� Te d'danaliy, be bald, most companies the heels ce Led the Social Security tax on ainro the tfacilitiese employee', gross calory. But Beeuilt seems salary facilities the Social wlthhcle by to he the Palo by the employee (and results In Cot% theme ami)' this approach Plays, Darin t a tax employer and: the cm - Aa alter°sto Plan, Whleh Pace Waterhouse toile, 'net utery "Tangetunt." would have the employer Dar the wicker's tax. The re. suit Is that the Social Beeurlty tax la simply bawd an the amployre's salary "hat" f any e7rA levy. The o eolployee's take-home pay relnelne elle acme, whue ale Loanable income declines sllkhtly, and Lie employer eon reap dramatic lax savings. Air. Klein cites the lass cc a 810d00a•a-year aarkrr whose employer switches to, net pay approach. The employ,e,g taxable Income would drrp by 809 • year green though his lake -home p,y remains ralatant. and the company can pare it. tax expense by $78. be7he tax ea°rmoua. 1,03 Angeles, County�afor ex� ample, Is considering a pan prLudy. by ex. kinnogement ImPruvlment Ceparedtby oe America thnt le "'d to have the potential at Isvlug 86.0 mliltnn In FICA taxes during the First year of operation. fICA Itlil$rRATION Ienre en grlrmd emDlaYee, a depmdenid or Pnhuchl AllbrllvlRlPa �llayer or (stIs a ate all FZ Brut? pAyytmf Is based on a lower level at Weil, genliel.;,:;; Ir.^m ` , such employer los private nonprofit m railer, ection le exempt bothemployer _, re,,. tllanmr p:I, under ham Income9LAX em p) at the internal PIOYeeteanr receive Iflrmtrflnanelnl .. -.. :: a alp C! d* at 1 neve• nugr Code of 1081. or 2 43) ret any teneflt when they JointlY agree for the ta,l t ne bteenme Drs..-_ hid pnymeot re- rynlred from nn rmpi employer to assume Ilia employer eel.. ,,,••. pars p, employ, fmylo nDo,e onsN__ {miron 1100.90 17101.61 Iii. ]nY �•� 11,51 le, en 111 A 9.51 Jaen znzl . under a skier un• re CA aF ns.il employment cnmprnsatlon law." ohligatlon, under a Procedure slmllar a ander talndbte the rl-A pile the empiore•t tutu nw, IhI eectlnn 3121(a)(6) of the Internal that which PresI Just this ibed. lie a now I "ductd be e.0 praenLJn, 1, fm brtneemp 110, peri), olio" a Coda of 1D69 a am)uded to reW u loin mien el IIuA. fohoevs; Ittld always hna been Perfectly legal, It 'Ilot III 1 i5 i. � m ��i lithe eaa d Alii me einglo s i n;° "(6) the parment by an cmpinyer Is not a devious method of dodging taxa, 'life °in a bee s I r"err urn lie ed back 1 ss he wb rl empnveft) on tram thercmnnaallnoflethile ICaalrgltlmate,IunartbusinessprllCtice J7ed°II:e1aI+Nv>w by which employers and employees who 1M lied lojyr'i �nnydq pwAlYEi1In the rebiweim flo�tiq Air, ThU1CAIOND, so choose can reduce their eoelsl fie• 111, Arrau, 4rennA blelwma par fids .T 311.1 r1 rah amendment would modify Presldrnt this curltY tax burden. hie, president, I ask ke l oian elm pu i Grip Nilly WYi � aM11 1n,n ieoi ". the pemiln7 bili, o g to to 607 of unanimous consent to Include Ili the fill"mean.+n Puation of socalP erurlMnH is the cam- REcORD at tills Point an excerpt from the The nmrndment is three ( pre ,r) axes- New 1-ork Times of APrn 10, 1078, which Ttu nneNu rnuermzs AurNoxtNr vldin8 that em In e D r•d• Pro• describes the oprratlon and bencna of Mr. TRIIRMnNEC. Mr. president be- hnAlnrss P yrs w'ho are small this alternative FICA tax procedure , and °"use this °licenntive FICA tax peoee- nteha, o mp oft entitiesor Jocal me. else ° also °table Illustrating8 nnobJetlo the plhe mntcrial dure results in f.)IghUy le -.s tax Marney of t hn)11 cntploycr and employee u'a• Therebeing a be printed la the Raeno, pRld Into tilt sIN •••y Admin,strru" trust hod nit the FICA ax without Shares as foliates: the Society Security for so doing by hnvin being penallreff ranWaeed the Flnertee Commlttec to lox g to PRY a greater 60CIAL B,CLorn: B,TINO Tae sam reconmrnn to the flerinte that this long. Scrtlnn 507 n Nota that workers and employmanke have standing plovalnn ba drasttenlly altered. f the, Pending bill, to digested the Mtl t increase m the Ikxlal cis- The committee, to section 607 Of which this nmendmnnt is directed, makes 0urtly los' word rnmes that they May IN, a Pending bill, propnses Lp Maio flnmtcl Ily a W IlV a rri n^.e In narlal aecUM/9 tax The "Julian reduce n a to h of the temploy" mraltof s1111Frthe0 rI II°)- aw by stirring a policy that has been In the Workar's sham of Ne e0•uU&CA ttatt ax ° of rmllioYer- rltcrt since the Inception of the sorlal a, Weu u Ik o.n, 1mlrad or PDutunr tal,he The committee Aar mmmlds that Con- arcurllY Prognun same 10 rel lire rer0 cnn,;r• r os rrnll that this°chs � !n aoa. AIm allh it epeed�ee as eempl�u Is •y,,,pleriTe lnmpM ' c (dews nl lnRubt hoar, nrnnased b Y wautd la more n yh benefit often commit. S ale fife cti urn chess enrun benma��q� Portion ofket to fthit to xso that It Includes any tee u•Ithmlt lhr yme cement o, m ro m bbLrb hcnrings, at a'hlrh the groups aRrcled stand, few Paying haus ICA t"urICAe null In rmploYrr. 7 Will wait for the mnpinyce e°°It'"""I'Yantolhnadverseimpactsof set alev eRectrc- !h dollen Y of FICA Cox on PICA tax. and ,,ills term;, It will reeIa.. MICROFILMED BY JORM MICR+LA9 CEDAR RAPIDS a DES MOINES ,706 CONGRESSIONAL MECORD—SENATE Jant(ary 81, 1980 draw should remain as Is under current law." /4. Any lone In revenues caused by retaining the option should mare then be made up by the Incentive for and the Increased llkeh. hood that public employers will remain In thasystem. 6. The small decreue In individual retire• ment benefits under this option 4 offset by the Increased take home pay which the em- ployee receives. It is our position that public employees and employees Would be in the beat poetlon to determine What 4 In their beat Interest, me is currently allowed. e. NACo strongly supports continuity of federal policies that affect County procedures, policies, and systems, unless there are clear and overriding reasons to change. It would be expenulve and time Consuming for those counties whlch•beve already wnvcrtcd to the employer payment option to have to change back Again. 7. Retaining or striking Mellon 807 MII neither Save nor cripple the Social security uyntem. In these Vince of ficwl stringency, County employees and employees must he Concerned with Hie beat possible bene0ts and coverage tar the price. The Soclal Becurlty System must be made attractive and earn- petltivs with other options, which it 4 in Inereaving danger of not being. While we Understand and sympathize with the Senate Finance Committee's concern over the soundness of the Social Becurlty e78tem. me believe that section 507 would not be In the best Interest of local deE4lonmuk- Ing princlotes for employees and employees, the likelihood of participation by public employers to the Social Security system, Por the dseai integrity of ms system Itself. We would appreciate your smustu a on the Ben• say Floor In restoring this local option for public employees. BQNAAa T. BR.L.xwSltwo, rteontlas Director. GOMNUX"AL Areurs CoNgULTur y, Summerville, SA., January e, IDIS. Hon. Eamm T. no,, name, U.S. Senate, Washington, D.O. DW Smells HoubmA: I a, writing to ark you to oppose the passage of Certain rewmmtodstlont of the Senate Fima¢ee Ona mlttee with refereoce to MR. 8270 now Pending before the United State Senate .. (Calender No. 470). Thus proposals aro Sp. patently the `exult a languyl* suggested by upon private business and local government. Present tax law emblem the *,playa to PAY both the employs and employer share at PJ.O.A. Tar. Ry doing this, the employe can achieve a analogs or approximately threel fourths of one par ant of his gross payroll costs without any reduction of the em- ployeels take-home PAY. An A matter of fact, the employee usually enjoys S slight Increase In take-home pay, All of this to possible be. Cause the employ", under exleticit law, Is able to avoid paying ROA tax on the RCA tax itself. The" may Slee be It very alight reduction In state and federal Ineome.uz Which further benefits the *mployee. Through the one of this option the am. player Is able to obtain other valuable economic benefits, Theo Include a potential reduction of over 0% In workman's cam- peAttlon premiums, pension "pence and other malar) -based fringe coat. The hteporL of the Senate Finance Com. Mlttee on HIL 0270 would remove this option by making It applicable only to domestic servants u a result of new language alert- ed In Section 200 (f) of Voe Aet which amends 6rcUDn 212119)(e)(A) of Vie Internal Rev@• nue Code, This change would work s severe hardship on public sector employers, farm• era and private buslueas. The Town of Sum- merville, for example, can love over 47,00O.D0 per year through we of existing provisions of the law. This equate, to almost two mills of ad valorem property lax. I know of two private businesses In this area which alto have the plan under active consideration. Both have lase man 60 employees and stand I o tae over 49.800 each It this amendment is passed. It wen's unwise to elect leglslallon which will deprive local governments, small bull. name and tum employers of Vols option. This Is particularly true when these elements of our economic allucture are facing both the expense of Iodation and the threat of to. cession. The Argument has been advanced by the Committee that this change to needed to prevent potential losses of social Security Revenue The" sstlmatas have been hued DO the faulty usumptloD however, that all employees In the United States will IMmedl- stely utlllu this option. That assumption Is ridiculous. Many employers are too smell to gain slgnlflcant bene6L from this slier - native. Many others would fall to use the Idea simply because of a lack of awareness. Finally, others would reject this option wle_ ly on the bull of Its complexity. Further- more, any Small decrease In RCA Revenue which might Occur would be easily offset by the stiff rate and calling Increases scheduled over the next several yea". In short, the pro- posed change to the present law seem, un- DeCesaary, unJustlfied and, In view of present eMoloch: conditions, Ill-advised. I hope It will be possible to eliminate the . change entirely. It that s not Possible, boW- ever, Perhaps the amendment Could be mool- sed w u to exclude the public sector, Small business and tumors from the proposed Brad. tatIrML Anomer option, although not A par- titularly desirable one, would be to provide Som@ type of grandfather clause to protect Our Count, those who Implement the system dwlng the tales on bah, next several years, along In its e It 4 tmnUal that the present prole"1 conversion to be Stopped or at Ieut modlded. I urge you wouldto a rbe 49 i to vola your oppaltlon w lhts act and to "Vilely cU is You' the Support oI low Colleagues from wnvthe In opposing tour measu". Clearly. the 7'bank you. for your mtum t and your county goven help, portant w th Sincerely, for they tent JOHN P. WmeARne. system and P _ drawM. Gatti poundfwlish loss far more I save by ellmh. Aceording to data, a total I ployees hu vc lallonehlp wit 00, 1070. A ref of withdrawal of employees I governments p mole equal m In the last tw A recent stu Brookings Ins who came unit paid the m"1 BOARD OD SUDIRVmOA, L cum or Los Amours, lVarhington, D.C., January 25, Ilion, Han. 11vastu B.1ANo. ' Chairman, Senate llnance Committee, Washington, D.C. DEAR SENATOR LONG; &Ctlon 007 of H.R. 9270, which the Senate is presently could- enug. would remove the approximately 0 per- cent tax saving that accrues to m employer who pays the PICA to for big employees. The county of Los Angeles, and the National AS. sam"Von of Counties oppose this pfovislon, Which would eliminate m option which hss been available to employers for 40 yearn, end which bu become mereuingly Important to county govarpmeote. Not only days the press Ant law Parrott a saying which 4 Important to counties, and their taxpayers, during a Period of fiscal stringency, but It provides a¢ Incentive for counties to remain with the Social Security system father than oat up their own retirement plans. As you are aware, withdrawal Of govAmme¢ur at All 1110, from Social Security baa been Increasing in recent years, and thin poses a major problem for the system. To underline the Importance of retaining the present law to COMIlles, I would like w cite actual eases. BAnts Clan County, Ca11- fornla, Is presently paying the PICA in an behalf of its employees. It adopted this ap- proach In 1078, In the wake of Proposition 17. This county has PAID employees, woo bad an average salary In 1078 of 610,000 per year. It WAS not In a position to grant A wage Ineteno. for fringe benefits and other cat, would ball risen proportlonately. By keeping salaries end picking up the FICA tax Payment the em• ployee would normally here made, In lieu of a wage lnueus, thin County war able to Increase Its 2MPloyee tak@hOms pe, by 7 Percent. Put of thin Increase came from the t" "vies of 0112 per employee that the county athloVO4 by paying the entire FICA tax. The foul "ving for YAoo employees amounted t0 41.1 mW tort in 1078. Hon. SENAfoa Snots TYtwluoce e, 1070. Dlrksm Smgie Office Building, Washington, D.O. Dug StNAroa 711aauoRo: This tetter 4 to ISP Dug my personal Concern In ngwds to Imminent Action, by the Senate, on H.R. 8270. M Mayor of the City W ,Won, and as President of the Municipal AuaytattOn of South Carolina, I un particularly apposed m Section 807 Of that DBI.. 710e0 municipalities, and business em• Players who praeUce Sound decal manage- me0t, And who hale taken advantage a1 provurloos of VIA social Security Act which half existed for forty years, would be severely penalized for their *Maloney It'th1A Bill is wouldonly e to Include Senator nitima acme ee: mnnt which provides for a "Grandfather Clause" protecting thou who now use the ROA tax Option, and • time -phased (several years) I hop In your d COAlder my opinion an this Bill. 11 a wcco, or., Mayor. MICROFILMED BY JORM MICR+LA9 CEDAR RAPIDS • DES MOINES For, and numusta Its xaringe Ito¢ A yew, W 426.060 a day. UX "vings Are Important to ADts. Moreover, they are Iso• loclat Security system It"H. o bind our Counties to the vide a d1sincenUve to with. 007 4 A pennywlse and Minion, for the system would m Withdrawal& than It Would Img the present tai aavin2, r 2a Counties With 2e,1t8 sm- lunt"HY terminated their ro- I the system Al of September !ctlan of the accelerating rate to the fact that the Dumber epresanted by State and 10=I coding withdrawal today is &I - be mW that have Withdrawn If by Moths Dertblck of the Itutlon shown that a Worker 'r Social Security in 2077 and mum tax for the next thirty Save paid a total of only retired at the end of 1007. I worker Who entered In 1085 MAXIMUM rate will have paid SWAM= after only scheduled Increases base are not change governMenta are cc can do better by Inv In a private peAlot can achieve an fund lout as good as Sceli Inch a large gum or whether they lseement rale At dty at lower cat 29 •10111lary .;1, 1980 CONGRESSIONAL by home Other menus. C.Ounly governments nae ml obu11-114111 In Ther tuxpelere slid employees to explore such altenmUves It Is In the lung-Itfen Illte"et of tbo WJA1 ucurlly system. therefore, to allow, such A mutest tee Incentive as that which Section 607 would repeal, to continue. It Is somt0mea Implied by the proponent, of Section 607 that the system le being harmed rutax Saying 0 st fund. nut the drain ofstilts IS elmp Y nothe 0ASaDe for while It Is true that tat Pa somewhat lower, employee was tie ge ymymeentnt and Ihe"fore benefit payment at also lower. This 4 because by law, FICA tax payment, made by an employer on behalf of an em- plol•ee are arrlUded from the definition of "algu" for FICA t. b purposes. The employee aca • eumewhat lower retirement bane• 0l, but this la onset by the lncremed la home Pay he recelves In the netake- In ed termta In Conclusion, &IlatcrI Would lite to strongly urge you to CO'Spomor and support the Amendments offered by Senators Thor. mond and Ilelnu to either strike or exempt Blatt and local Beeston 507. govern And Other public entitles from Ib menprovt, Ans. PleAse vote for the IIe11713Thurmond Attend. men4 when they are ortere door. d on the Senate sincerely yours, Joscml M. POL",a, Lepl"atlet Coordinator. Bono or Clloe[N R11Lt110Lap[, Atteulln Punt aul Bupllno,•WYhmuarYrt, J9e0, sentaus,. Ston R epre. Dun afx, aurl.lrmt Enclosed llan No 43 wt 1 a ■ cerllfied bl'i'the hurlln(ptnn Co. lY fI ChWas of Adopted Yreehold,,, t thele tnlctin Chosen day, January 11, 10110, whlcA 4 calf- Wednes- tor7•. erplana_ alocarely ymne. CHARLxa T. JULGNA, Enclosure, Clerk/Admin4trota. IInoLUr7oN where■a under the Urdled States Boe1y security Act of 1010 then t, a provision D3'hich spermits employe" to pay the hath �'lY recelves .i■ttax for employ", and there.de; and o"11 ax Saving when they ao cLA'e areae. this provision of the SOC, Be* y Act has been In teat for forty year* and Provides legnlmate Ineehtiru yds ears reductionemplo la a time weep government and ..all ebony end are uslnQ every effort to fight Inflation; an Where",Con there o so Amendment poodle, tt the Congress m mike this Lbe defintu economical unateraative by!xWnd g any Peru of tfb�employs10JIa°°mLE 1nrJtlde by the employer• rna y Pad RECORD—SENATE 10711 and supports enor.A t Peal or o Prevent the I .CntlnI, of tt the ro Ch Aloof th et and, be IL Further rwwlved that It 4 urged that of gmlee Unints ted the Uounty of Burimpton write bers Of Collgrese from their districts urgingthemto auDDort artorte to pre- eve this employer'& option; and, be It Palthar resolved that comes of this Reao- lutlou De forwaned to the UulLed States eenaars of the Stale 1-t Naw Jrreey, mamDaax of the Cotynesslonai nelegatlon fee Putting. ton County and Lhe Caalltlon to Bare our RICA Tart, Mr. 711ILI MOND Mr president, the opponents of our amendment wW no doubt attempt to convince the Senate that allowing this FICA tax option to continue will hasten the demise of the Social other Senator, isecurity trust fund. Let me assure trust fund Is that bankruPting the the contraryIt ",a , lint our go¢l. To the corn . 1f a•e mere convinced that solutel mlttee'a recommendation was ab. curlt a necessary to gave the social se. 9 system, or svold further Lex t1-_ creases, we would probably support their effects, However, In their zeal k "save social security ,•' the committee has over. looked a far greater threat to this pro- gram—that of voluntary terminations by . the non -Federal publi r. sector and other employers for who participation In the sYakm Ie oDtlanaL ers to U S 709 No Un ,Ia Aeeucllallon ofIt BnLLO both the County of Loa An 4 O have apron and the I ported ret,ntlon of tile local opt for ■up- Itc tmpluyare to PAY their emplo IOn or P of empl yeentry large, Y an Incentive for thea. employees to remain la or opetl nolo the BaClal Bacurlly,y,tam. The colt of this tnosntlt 4 pr Is" than the exampPotentle! hYapese lOn from withdrawal, £or example Lha revenue lou It the at,, of Imost Tart were k withdraw le I00 -M employees halal o8etutltm would G Luny Octad b hundreQ and Stir tot ) would be one dollar, a Yeas. Des !td two hundred minion savings i° the stag !or othr hand. the tax FICA tax It about lutepaying Its employees Year' Section 607 of 8 °WILOU dollars A remove this lacent4a JI Cis f8. Which Would wide and Poundfooll[h meteors. Penny_ We urge You to Support removal of Section $07 from FFR. 8178 when the bill a slderod on the Senate eon•floor. Sincerely, Washinplon R aerinic, _ presentative, SOCIAL on A.nINIaraAI ION, air EBolttmae, dfd,e NOuf mbar J0,1970, . , MIrC11rLL JONN[ON, dfanagenlert Improuem<n! Corp, OJ America, Durhmn, N,O, AN hie, JONNa°N: Soelal (curtly WV. nlrutle," andstate for both tax•erumpt or,a- e tate and 10 Increasingly, munlclPalltles, and States Are Counties nclntmg A list of al quell and lies. anm nd to t41ee that have alga with be a poor econotindlnil social security to mlc choice as for at s res- tlrement the al ar. CIA) Admit l enUon to t,rminate their go• Y °average, A Voluntary nation program for their ertIPloYeeO, and they are Wld1R to withdraw from sYekm, eu Tetrad. Which le "so euntalarlsa the (,Utica In c the fkcent data lrom•th0 8ocla 9c- c11r1tY AdminlgtranOn the saective the Ile(• 9a1oe of 1st dr tarmlotlon on the caned 141 an at the °- reveal that the number of appllcatlone for del !'!talo the next trly tutun tea nae •noun Of intent k tcrmtnate must be mad at Out adate,n ad Of Ona' 2 Years L nearly one- .hlyd the number than the deslnd telanx. or employers who vol• LlltarllY to The Oat 4 amotand k oho ut4a Even more te In the Prior 20 years ,number th of employees �lrepraene fact � b Wink had local governments Pendia total that hawal tvee wlth atvn In 14 almost the last 20 Years' `d+ President I ask fin oua that several tables pfepgtM by tu�mma Bau'Lot AdminLslratlon that alaallons b to xtatua of Voluntary ter_ his Point. Drinted In the Recoab at ere Ing no ection the table sere 0 dareed to be Printed In the RrpoeOUS . and / tolhlwe: ere wam the Sir hertY, such an Amendment IroWd la- C Azz"O ASo S SAVAaCVa.. Y70A Tali, Janna Deals, a ry hurt the Ratio O, UtM In p �nl oWd 1° Attention the e would like tt29, p wil'to an tical gave en a farmers; and mall bwIneennI and pluvtdAt nt the att,ched Information, hu Dbtm f then t, M 0 81111 tion w retitrete, lhlth doCume°V �betlMt7 Adminl[- aeminFCA a °lined tmwe u COalltim to &ch you kaowtvm til■ Baal eeeurtty systemw' Ai Yy sped, laa4d at Belt, elo, to Public hate. entitles Panicipea sad Ale>updrta, V4paa S00t tOluaarUy In aa!■1 acOof the nty, Where" ,list, org=LzAtlon hu or . Qgetl: wltben jty t fact fah to rtti harate of mate at national camp■Igo I, notlfl the r an�Uve B° aroyeas So / etak and (opal urging senatorial Presented h civ vis [hem W support stheaam fyelegations amore put w Mln, withdrawal today I. &coral option w Ployerf Bo- ep eqWithdrawing tthe total number of employ. utaek: now, therofore. haft Is now under !n the last trent .y Years. Resolved b Chase" NBak w0 focal goveramen4 asp lners■e, holds" of the the BOas this PAY the ard,vppobt,nttIla a DloY Of lieB: h that fie Investing Rlfn Yfvnelr eontrlbut,q kBocacan do better ( to enure y optlop w private employees under the 0el■1 Security til, for hether they can ech Pa.., m plan, or Banal SCCurn7 Act "Placement tall at lout eeRoad a° earnings of aecurltl at lower all by, oo hnrucapsl MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS a DES PIOINES Shu have to ;Two their notice of those on. Intent k ernunat,: ;T Olfip of insurance e Program[ hu advised me eat they bean y about°N wlthdrowac of nonrus yet" ago. Bet ce to kmdnata list Was all of the 16 et�rlvdlWll ThereM that fore not have a State and local eaUtles tbat drawn their oouca to rminate line nave thea with. I am unable to terminate ata showL Of tax-exempt Organizationsut 1th 1. a Wt to nrahlel the their sort seeoDrfaey cote filed required . £edertl aOra of f"cleOutlmlActt. Orde Available to the lencyub to ase 1t, 1-c. Certain elaeeee f rano acL exempt, dee , One exampptiogtd, from th$ nquln• peclacall pettalto matters by statute, 1 eYP r from d4ctd■nre A tax•exempt organt,atico'e formal rs. quit k terminal* scala "Cunt y rOY IA oNglaI IS filed with the Internal Remade Inservice, Information to, I n, to this typ, forrmmation S eonelded t to be tax return Act of 1078 (90 tyaoetl bI the Tax Reform der the elreunut■, B�gjo 7IL M fore, un 11 . •B.C. e109(a) Preclude. tie from disclosing 2a this Intnrmatt°n to You. If you o not agree Wth the decision, you may aquae( that It be nvlawed. Any Appeal of this lilt milled Within So tlge of t ppeal tlmfa this letter to the no 478 478 or salonar Program , 0101 security eoul■vard, Dat• velope MP eerydicmd 11188, plate mark the on. of Intormetl°n Appeal;' Sincerely, D4ecIOr,PAUL A. Schumm Enclosures. plCe oJlnformaiton. no d10 CONGRESSIONAL RECORD --SENA TH January 31, 1980 11118.UNTAaT TI RANNATION SUMMARY Aa Or VOLVNTARv Tas MINArtum, OOCII0n b07 "would aubgtantlnlly 111cren e &rnuorx 3a 1070 ago 1970—BaOEMRn loot AA or Serrxu• hospHel personnel costs" And be "con - Total regaesled to data (Withdrawals not eta so, 1079 trary to the objectives of the voluntnry Included -1376 entitles) effort to contain health care costs." I ask 1. Entitles already terminated (Septem- Approximate unanimous consent that the full text of ber 1959 -June 107D)-674 Number number of this letter be printed in the RECORD at 2. Entitles pending termination (Septem- state of entitles employees this point. ber 1079 -December 1991)-222 There being no objection, the letter 3. Approximately 25 percent of all requests the last 2 Alaska .......... l l'37, 168 Was ordered.fo be printed n the RECORD, have been received within yeah. Tuoulnations through September 1070 In' Arizona _________ 1 76 Arkansas ________ 1 132 as follow6: volved approximately 111,9" employees. California ....... 53 12,802 AMERICAN HOSPITAL Aa C=10N. Pending terminations Involve appeml• Colorado........ B 1,275 Washington. D.C-January 29, 1210. mately 911,1 is employees. Florida ..L..... 8 1.885 Dun SENATOR: The Senate will seem Roo• Terminatlone-1713ree Moet active States: prorgla ......... 38 27.338 alder H.R. 0236• a bill to amend the SOCIA( California, Louldans, and Texas (81 percent gayly, ..... _ __ 2 2,707Security Act with regard to dlsablllty Shur - of all knutles terminated). Loulslana ....... 12 0.000 ones programs• on reported by the Manner Committee, Section 507 to the Terminations pending—Three most Retire Statist California, Gaorgls, and Tax" (02 Maine ........... B gg Maryland ....... 1 4.937 which added bill. section 007 would sumnInsts the option percent of all entitles pending termination). Michigan ........ 4 418 dint employers have bad since the Inception Based on percentage of each etata9s total Mississippi ...... 2 470 or the SOCIW Security program to achieve by the of political subdivision, (eDMtie) that an Missouri ........ 10 a, 406savings Paying employees' share pending termination, �a and Loulslans, lines da ......... s Io the FICA tax liability, Current law enables hospital, Including are the most active. Oklabons....... 10 02e Pennsylvania .._. 1 10 many financially troubled Institutions. to Texas 47 23, 03B ublevo significant zovings by exercising this Active political Puaent of the subdivisions state'svPolitical ........... Utahington_..... a 477 u tion. For example, • hospital with 000 am• 0600.000 pending active polncal Washington ..... 6 439 p oyeca can potentially gave about over o period. Such egvIngf, In turn. Bata termination enbdlvlsWns Interstate Instru• mentality ..... 1 0 aro pasead in to all ppas care n of hospital ted on' muro, Including the Medicare and Medicaid Texas...... 47 2./ California 54 2.2 _ 722 08, if/ program. Our MsoclatloD, Which represents 0,100 !n- _. Lculsl&na __ 12 2:/ stitutlone, believes that Bastion 007 would Georgia .... 40 8./ Mr. THURMOND. The point is, Mr. nubstantlally Increase hospital personnel S President, that ti10 "employer pay Op- custa, which competes an avenge of over 60 VOLVIRTAar T"UINAnONs—B URR 1069- tion- Is riot a real threat to the social Lion's provisions. many rcent of hospitea expects".e ago. o piittals wer ould be summon 1079 security system. Increasing voluntary faced with alilDmunt Increases In their b. terminations, however, could bring about charges. Tbenfure, we believe that Section Numberot Approximate the demise of the system In short order, 0(17 Is contrary to the objectives of the Vol - entitle •number of and this Option provides a substantial unlary Effort to contain health Dun eats State tt:rmldted employees Incentive for these State and local gov. end Is InconAtslant with federal policy to pro- mote met contalnment m the health can stem It I& our Arm view that the • Alaska .......... 1 48 • California ....... 207 87,124 Ing this category of employers Of • legltlmaq edt /aylriQa tool Will only ayllodeliven ehoutd not M enaond. .� Cotorydo ........ 1s tie compound the problems facing the trust We tharefora uqe that you support en amendment to ,trite Section 807, or—fa the t'. "& ........ s I as......... Ia >7, 811 fund. offered—toa avant such an amendment not offered—to Illinois .......... I 1 n / , Tin par-roe-orm vote In favor of An amendment sponsored by Indiana ......... 11 20 Finally, Ml. Presldlnt, Our amend• Senators Thurmond. Helm&• and Armstrong Kaness ......... 2 87 ment will permit nonprofit Institutions to exempt certain nonpront organizations• Including hospitals, from the provisions of Kentucky ....... a 64 and organizations to continue to have a Section 507. luulslen& ....... 196 46,2" FICA tax option without penalty. Not- _. sincerely, Maine........... 9 1312 Marylgnd ....... 1 6 for-profit organizations (under section Lea J. Gnlno. MD., Massachusetts --- 1 10 501 of the Internal Revenue Code) are Rentor vies Prerldent. Missouri ........ 1 a literally being crushed by growing FICA CONCLUSION Missouri ...._... 0 31 taxation. Because these entitles pay no summary, Mr. Mr, THOur Nebr is ........ 9 yg ' Room nC0m0 tax, they Cail110t offset higher PI'lBldent, 0111' amendment takes riots OI amen a .. • ......... a = FICA Last" against Income, thus reduce special problems which action 507 will New Mexleo...... 2 297 Nona, carouan.._ ng the amount of income tax payable, create Icy =all business concerns, State 1 20 North Dakota.... 2 21 as a private buslneae would. These an. and local governments, and norprafftan- ....... :a 1101 tinea pay no Income tax, and, therefore, titles. None dl they groups have had W 'renOklahoma ......_ 7 160 texas FICA talc increases hit them doubly adequate opportunity to date their case ...see 7tau ..._....... 9s 12, 57s hard. At one major university, FICA tax In either Senateor House henand Utah ............ 1 g payments have increased by 250 percent the Houseehas riot even considered this &Ince 1974. Issue. All three groups have serious can- voLt7Mrasy TnMINAi1oIt.--Be'tsaen 1981 -For tuition to be prohibitively high, for a little less cancer research to be cams with this section of the till. At a Barrenness . Barren 1979 • performed, for an emergency room to be thae when there'is it growing feeling that something must be done to relleve the In - understaffed, for a youth organization cremeglyheavy PICA tax burden, Itsn1. Number Approximate of entitles to have to operate without a program ply makes no senna to deprive there em - number of state terminated employees director, for a museum to close, or for a ployers of a perfectly legitimate coat say church t9 curtail Its outreach program, Inge procedure Mr. President, I urge the Washington .... 00 20I0 ought not to be allowed to Occur due to Senate to adopt this amendment. 11 Interstate Instru. M an ueCNsary PICA tax Increase, Mr. HELMS. lite, President, will the mentalities ... I qg Mr, Pfesldent, the American Hospital Senator yield Rome time.to 17167 • _ A='Latlan, which represents some 0,100 institutions, has Mr, THURMOND. I stn pleased to 674 tills" circulated A letter to yield to the able end dl6tlnauGhell Ban. each Senator, stating that they believe &tor from North Carolina. 901 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS a DES MOINES laa)(a)-J A 1980 CONGRESSIONAL RECORD—SENATE • IHol ILA] l Vote No. 26 Leg I YEAS e AnusHong Hosnkow:a Pryor u,rhn aerh Timm meals, Echo Heint noth n Ilelmr Barba Bider Hollings echmnt Dumper Hutldleaton ewelku car" Byrd. Humphrey Simpson Harry P. Jr. Inouye Stallard church Jepsen Bteveall Cohen RAssebaum ctewirt Culver Lacalt am" • Dtoonclnt raumrmond Dna Leahy Domenlci Magnuson Tower ureaborag" Mathias Durkin Mat una Ya wwalnlop rord Manure warn" Corn Meleh" tvalcker Oltaa Morgan Zorlruty 'Hatch . Nuns Hatfield Pressler NAYD-7r Daucu Eaaleton Packwood Doren torn Pell Bmchwntz Jackson Percy Burdick Johnston Proxmire Byrd, aobert C. Lone Bandei h cannon Metzenbaum Africa Clines Moynihan eteemAs Cronaluo Muskle Stevenson Danforth Nelson Williams NOT VOTING -12 cradle/ Hart McGovernB" Chat" JAMS Young Cochrim loamy Goldwater Lugar So Mr. TIMIuowas amendment (UP No. 941) was agreed to. Mr. THURMOND. Mr. President, I move to reconalder the vote by which the amendment was agreed to. Mr. LONG. W. President, I move to lay that motion on the table. The motion to lay an the table was agreed to. The PRESIDING OFFICEB. The bill Is open to further amendment CORRICraN OF ran aacoaa--Or AMIMMYNI, Mo. on In readin the daily of the RECORD of last night's proceedings, I noted a printing error. On page S. 641 of yesterday's RECORD tmPrinted. amendment No. 939 appeared. Unprinted amendment No. 939 to MY Med1ORp amendment to the on. Printtd B=Ddment NO, 936 of Senator BAucoa. In the third line of section 2(B) (II) the word "contmuing" Appears. That word should have been "Counting". The phrase should read "In counting such days" not "in continuing such days" As It appears In the RECOM Mr, President, I ask unanimous can. fortthe owsourd "conti uing"I "unprinted 1. amendment No. 939. I Bak, Mr. preg6- dent, that the Official copy of the bill correctly uses the word "counting" and Is thus• consistent with the change I Propose iqtbe Permanent Reeoaa • The PRESEDING OFFICER. Is there objection? Mr, LONO. Mr. President, reserving, the right to object, and I am not going to object, but I suggest to my, good friend from Kansas that hereafter when he wants to correct the permanent RECORD, he simply prepnre a memaran. dum and send It down there and save us the time of listening to all this be. cause he knows we are going to give hl consent, and we will, We always, try t give the Senator consent If tie wishes to correct something as he properly should. And I congratulate the Senator f finding that error in the REcoRD and see - Ing that those who read the RECORD can have no doubt about this particular matter. Mr. DOLE. That Is right. The reason I did It publicly is the Daucus amend. ment was a matter of some controversy, and I Indicated to Senator Dwcue that I discovered this error myself in reading the RECORD. So I Just wanted to make certain that I did It OPenly In case Dome. one was listening In the Senate oMcea. Mr. LONO. Mr. President, reserving the right to object, and I shall not object, let me urge that all Senators hereafter should read this RECORD and see Clint not only what they said was correctly quoted but to see what other people say was correctly quoted and that the amend. menta were properly numbered because IC would be vary bad at some point In Cha future H people would have a serious m gundaystanding that something hap• Pened because of a tcclmlcal error. I congratulate the Sonater. HO is do - Ing a duty that many Senators fall to da DOLE. I thank my distinguished Mr. LONG. Most Senators do not read the Racoon. If they do, they only read what they Bald. They do not read what the other Senator said. Mr, DOLE. That may be what the Senator from Kansas was reading. _.7ha PRESIDING OFFICER. Without mr. LIUME.NHEROEB. Mr. President, I rise to apologize for not reading the RECORD and in support of H.R. 3230, the Disability Insurance Reform Amend. In our Flederal disability programs. One Of the Problems witil existing law L that there L DO Incentive for the disabled to return is productive employment. In fact, the Current' program Is a dlancen- ttve to work, if a worker who has become disabled attempts to return to work, the worker Ions all the benants provided un- der the disability Insurance program, This most important lone te medicare health Insunoea. At the same time, few employer want to hire a disabled worker because of support costs such as medical Insurance. _. deLertmIniGonems exist in process and In he vocay tional rehabilitation program. The de. termination process Is he procedure by which dlsabQlty states Is decided. The vocational rehabilitation program is our rather limited effort to teach new skills to disabled worker. These are some of the Issues addrosned by R.R. 3236. I am nartirufarfa Iae.r.et.d ,csan+uaD. to tact, whoa It appeared that the bill was stalled In the House of Representatives, I introduced leglslotlon 6 1643, which separated out the work In.,centive provisions in A.R. 3230. My In. tentkm was to amend any avallable piece MICROFILMED BY JORM MICR16LAB CEDAR RAPIDS a DES MOINES S717 m of legislation to Moura passDge of the o provisions. Fortunately, the jecislative Process moved forward, and we are now able to act on the entire bill. or The bus before the Senate today has 'several sections, and I would like to com- ment on the major provisions. ar The first, and most controversial mat- ter, Is the cap on the auxiliary, or tie. pendent benefits under social security. The bus Is one of those bittersweet pieces of legislation which requires the Senate to reconcile social concerns with eco. norm reality. The disability insurance program is funded from one of the trust funds established by the Social Security Act, DemogmPhic and economic factor , have disrupted the financial stability of all of the trust funds. To maintain the solvency of the trust funds, we have two choices. One, we can Increase the tax rate on workers who provide the revenue for the trust funds. This, we have done. Second, we can limit the benefits allowed under the program. We should not limit the primary benefits of our retirement and disability Insurance progiums. On the other hand, we do have to make a decision on what we can afford in the way of auxlllary benefits. This Is the bitter decJslon.whlch we have to make In H.R. 3236. Incentives vewhich cond are section sesiggneed to eeencour. age benchcluries to attempt to return to work and leave the disability rolls. My Interest in this matter was prompted by the work of he Control Data Corp., in developing Innovative work support sys. tems for the severely disabled. When the Senate Finance Committee held hearings on H.R. 3230, Oary Lohn from Control Data presented testimony on their en. deavor, known As project homework. I ask unanimous consent to have Mr. Lnhn's testimony Included in the It -coag at this point. The Work Incentives seetttm has ata features. These features Err_ Authorize the SoclaLSecurlty Commis. stoner to develop and carry out demon. stration Projects designed to encourage work activity by disabled beneficiaries. Provide that extmordlnary expenses needed to permit a severely disalef per. son In return to work would not be counted as a part of the amount of earn- ino (current substantial lialotul."UTIfty (SOA) level Is 6260 par month) that cause the Person to lose benefits Extend the present 0 -month trial work period to 24 months. In the last 12 months of the 24 -moan period, the Indi- vidual would not receive benafits H he earned over he SOA amount, but would retain his 'eligibility for benefits If bo finds he must return to Cie disability rolls. Allow disabled widows and widower to have the benefit of the trial work W rood. Extend medicare coverage for an addl. tlonal 86 months to beneficiaries who have gone back to work but have been suspended or terminated from benefit status as a result of substantial earnings. Eliminate the second 24 -month waiting period for medicare which a beneficiary presently must undergo 1r he teles to re - o H+, yard Business Review May)line 1979 �. .__.... ..... ..... _._._ 611 TF" john W. McDaniel and lane L. Martin Save money by paying workers' social security taxes In May 1978 the Craven County Hos. pital Cororation, a 259 -bed, acute-care iaaliry located in New Sem, North C'arolina, granted its 8so employees a wage increase averaging 8%. Yet the hospital expects to save as much as Sso,000 this year as a result of the increase. Flow (files the hospital expect to accomplish this( The hospital is pay ing its employees' portion of their FICA Isncial security) taxes. In effect, the institution is raising its workers' take-home pay while reducing its over. all payroll costs. This procedure is Perfectly legal and aboveboard, and any organization that pays social secu. rity taxes can install it. While the amounts saved per em• ployee are small, in a large organisa. tion they can amount to a considerable benefit. Moreover, the amounts saved will increase greatly through 1987 as increments in the social security tax rate and in the worker salary base, mandated in 1977, take effect. In 1979 the employer and the employee each pays 6.15% of the wage in FICA tax; by 1987 the rate will have climbed to 7.15%v. This year the tax is pald on the first $22,900 of salary; by 1987 the base will have risen to $42,600. By corporate standards the payroll of the Craven County Hospital, $6.2 million in ;978, is not large. Yet the hospital projects a saving from this Program of more than 51 million in the 10 years 1978 to ?987. The hospital forecast the windfall based on these assumptions: current wages under $17,700 (the maximum subject to tax in r978), $6 million;, current wages over $17,700, 5162,000; annual employee growth rate, 5%1 and annual pay increase, 79,',, How it works The Social Security Act of 193- and subsequent changes allow the employ. er to pay the employee's share of FICA tax as well as his own share. In fact, the ace encourages this step by stating that the worker's share of FICA, if paid by the employer, is not sub)ect to tax. In other words, there is no FICA tax on the FICA tax. (The legal provisions are set forth In Chapter 21 of the Intemal Revenue Code—Federal Insurance Contributions Act, Section 312r(a)6, along with vari. ous regulations and court decisions on the issue of whether the employer may pay—not merely withhold—the cm. ployees' portion of the FICA tax and what the results of such a payment would be. Revenue Ruling 74.75 Pro- vides additional information.) Let us see what effect this program would have on the case of a person earning Sro,000 In 1979. Married, with two dependents, this person files an income tax return Jointly with his or her spouse. The Exhibit on page t2 compares the results in the usual ap. proach with those in the new method, MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES It the employer left his salary at S 1o,000 and paid tile employee's FICA, his payroll costs would immediately rise by 6.13% over 1978. Obviously thio would he unacceptable to most employers unlrss they had been cc.n- templaling a wage increase anyway. If, however, the employer adjusts the worker's salary by the amount ill increased taxes, he can stabilize his Pay costs. fit this example the em• ployee saves $7.62 and the employer saves $7s•t6; both come out ahead. While the payment of the worker's share of FICA is not FICA taxable, it is income taxable. Therefore the em. ployer must add the FICA tax to the employee's' salary for computation of W-2 ramings. It goes without saying that emplov- ecs roust be prepared by the employer to accept what, on the surface, appears to be a reduction in salary. At the Craven County Hospital we sat down with each employee and explained the proposed differences. As a result we obtained general acceptance of the program. Acceptance In a large corporation or nunprofit organization may be Inure difficult to gain. To make sure tlmt workers understand that this approach is no gimmick but a legitimate im. provement of the compensation pack. age, the employer with a large work force may find it helpful to personalize his proselytizing with techniques like letters of explanation and a "before" and "after" paycheck display for cath employee. Advantages ✓h disadvantages This different FICA technique pro- vidcs a number of advantages to rhe employer. I. Since it eliminates "unnecessary" taxation, the employer can rxtrnd larger pay Increases than the vulun tary wages guideline of 7%r and stay within the guideline. Inasmuch as circ guideline Is based on his unit cost, the employer can grant a 7.977 raise in take -Home pay at only a 7% cost to him. 2. Through savings generated by this program, the employer can add to workers' nontaxable or tax•defened soy $1 a t fJ is 3 I• i I I` F; H+, yard Business Review May)line 1979 �. .__.... ..... ..... _._._ 611 TF" john W. McDaniel and lane L. Martin Save money by paying workers' social security taxes In May 1978 the Craven County Hos. pital Cororation, a 259 -bed, acute-care iaaliry located in New Sem, North C'arolina, granted its 8so employees a wage increase averaging 8%. Yet the hospital expects to save as much as Sso,000 this year as a result of the increase. Flow (files the hospital expect to accomplish this( The hospital is pay ing its employees' portion of their FICA Isncial security) taxes. In effect, the institution is raising its workers' take-home pay while reducing its over. all payroll costs. This procedure is Perfectly legal and aboveboard, and any organization that pays social secu. rity taxes can install it. While the amounts saved per em• ployee are small, in a large organisa. tion they can amount to a considerable benefit. Moreover, the amounts saved will increase greatly through 1987 as increments in the social security tax rate and in the worker salary base, mandated in 1977, take effect. In 1979 the employer and the employee each pays 6.15% of the wage in FICA tax; by 1987 the rate will have climbed to 7.15%v. This year the tax is pald on the first $22,900 of salary; by 1987 the base will have risen to $42,600. By corporate standards the payroll of the Craven County Hospital, $6.2 million in ;978, is not large. Yet the hospital projects a saving from this Program of more than 51 million in the 10 years 1978 to ?987. The hospital forecast the windfall based on these assumptions: current wages under $17,700 (the maximum subject to tax in r978), $6 million;, current wages over $17,700, 5162,000; annual employee growth rate, 5%1 and annual pay increase, 79,',, How it works The Social Security Act of 193- and subsequent changes allow the employ. er to pay the employee's share of FICA tax as well as his own share. In fact, the ace encourages this step by stating that the worker's share of FICA, if paid by the employer, is not sub)ect to tax. In other words, there is no FICA tax on the FICA tax. (The legal provisions are set forth In Chapter 21 of the Intemal Revenue Code—Federal Insurance Contributions Act, Section 312r(a)6, along with vari. ous regulations and court decisions on the issue of whether the employer may pay—not merely withhold—the cm. ployees' portion of the FICA tax and what the results of such a payment would be. Revenue Ruling 74.75 Pro- vides additional information.) Let us see what effect this program would have on the case of a person earning Sro,000 In 1979. Married, with two dependents, this person files an income tax return Jointly with his or her spouse. The Exhibit on page t2 compares the results in the usual ap. proach with those in the new method, MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES It the employer left his salary at S 1o,000 and paid tile employee's FICA, his payroll costs would immediately rise by 6.13% over 1978. Obviously thio would he unacceptable to most employers unlrss they had been cc.n- templaling a wage increase anyway. If, however, the employer adjusts the worker's salary by the amount ill increased taxes, he can stabilize his Pay costs. fit this example the em• ployee saves $7.62 and the employer saves $7s•t6; both come out ahead. While the payment of the worker's share of FICA is not FICA taxable, it is income taxable. Therefore the em. ployer must add the FICA tax to the employee's' salary for computation of W-2 ramings. It goes without saying that emplov- ecs roust be prepared by the employer to accept what, on the surface, appears to be a reduction in salary. At the Craven County Hospital we sat down with each employee and explained the proposed differences. As a result we obtained general acceptance of the program. Acceptance In a large corporation or nunprofit organization may be Inure difficult to gain. To make sure tlmt workers understand that this approach is no gimmick but a legitimate im. provement of the compensation pack. age, the employer with a large work force may find it helpful to personalize his proselytizing with techniques like letters of explanation and a "before" and "after" paycheck display for cath employee. Advantages ✓h disadvantages This different FICA technique pro- vidcs a number of advantages to rhe employer. I. Since it eliminates "unnecessary" taxation, the employer can rxtrnd larger pay Increases than the vulun tary wages guideline of 7%r and stay within the guideline. Inasmuch as circ guideline Is based on his unit cost, the employer can grant a 7.977 raise in take -Home pay at only a 7% cost to him. 2. Through savings generated by this program, the employer can add to workers' nontaxable or tax•defened soy lel ' E•nmrt Arrangements. The employer, of coupe, FICA rax payments for employees can adjust the formula s to restore the [usually smalll drop Revlsed FICA method compared with traditional method i whose salaries are under the base are LadNonal aDprOach Spica, evenly over the year, while PAsanents for those over the base not ad. equately educate employees .16out the can he m M."' e At : 1 slower nee. So the em• Revised approach plrl'ier can put his cash to use For Salary _ 510.00000 SelAry S. Since employees *receive more i lase CA oma "-- --- __ S 9.]6700 oY employee 61300 Las FICA Dago by Sol a further saving. I e'1e1'1I6A - net pay C 3 9.]67.00 AIle1•FICA net pay 1 Less leder,, --�- 3 9,36700 I.,,' Worst F _ _-_---- 1.400 00 lass 7 I Lass Rale 1.394 7A " lar' Less sista^ [, 600.00 fault 397.74 r Lkemome Day f 7,767.00 TAke-home pay 5 f 7.]94 62 e eh coat: Sala" Pauly _ _ ..____•.__ $10.00000 Emdoyel i coat. salary e Pips employee a 3 9.36:00 ` FICA Pluf sll -'^ 617.00 FICA 1.150.64 510,61] 00 'GOmpula an f 101NA 00 510,577 64 lGnnOarM M 1a.de7.7110 3a7 00 and sr, 0110111 FICA Dept fringe benefits, such As retirement program introduces a new way of plunl computing taxes; the employee has a .I. Because IRC Section 3306[61(61• FICA base salary and A W -a base exempts from unemployment insur• salary, whereas before he had only the ante tax any employer payments of latter. the worker's social security tax (as 2. It may cause a «duction in ter. long as there 13 no tax deduction from tain worker benefits that are based on wages), the employer can save federal W7 earnings, especially In corpora • and state unemployment insurance tions and other private organizations. taxes. These benefits include life insurance income beta F , a. The employer can gain interest retirement plans, and profit•sharin use o slower payment of FICA taxes and unemployment taxes. l ti 1 Arrangements. The employer, of coupe, FICA rax payments for employees can adjust the formula s to restore the [usually smalll drop whose salaries are under the base are in Ws earnings. J. If the employer does Spica, evenly over the year, while PAsanents for those over the base not ad. equately educate employees .16out the can he m M."' e At : 1 slower nee. So the em• advantages of the program, the decline in plrl'ier can put his cash to use For gross pay (offset, of cnurse, by a rise in a longer time. net pay) may generate ill will toward S. Since employees *receive more the organization. take-home pay, the employer can alp A competitive edge in the job market• Whatever hatever difficulties may arise fade in importance Wl place. 6. Because FICA is not required when you consider the benefits to both the worker and the to be withheldfrom wages paid on a %ick pay plan, the employer can obtain employer. For each employee under the FICA base, the procedure can save a further saving. up to $172.10 in FICA taxes in 1979, F h TO he sure, there are potential ills. ;( advantages associated with the pro. gram: 1' I. It requires numerous procedural I changes in the payroll, personnel, and Other departments. For instance, the ort ermore, the saving will rise in future years, along with ancillary cuts in income taxes and unemployment taxes. MICROFILMED BY DORM MICR+LAE3 CEDAR RAPIDS a DES MOINES r� fohn W. ,"VI)anicl is assistant administrator Of rhe Util"cn County Hospital Corporation In New Bern. North Carolina. In Alay 1978 he helped install :he procedure discussed in this article. lane L. Alartin, a CPA. is vice president— finance of Management Improvement Corporation of America. a Durham, North Carolina consulting firm. Site was Controller of the Craver. County Hospital Corporation in ,41ay 1978. So9 1 I Alabama Camp, Camp, Camp, Telladege City of Him wood City of Satuorie City of Tuskegue E. D. Prince Associates FICherwood Nursery, Inc.. Mobile Jamal S. Duke, MD, PA, Dothan Kenworth of Birmingham. Birmingham 0. F. Richter & Sona, Inc., Cullman Alaska Al.nka Nauwral Bonk of the North. And orgw Worry BnnkkrmPiml, Anchorage Alums Bdl Mndlcy, Gdbon Camellml, Sarvlaa, Inc., Phoenix Calsiina Primera, Tucson Photon- Coca Coll 811111nq Co., Phmnlx Swanson Company, Phoonix Arkanese Davis Industrial, Gamic t Delta Inc. of Arkansas, Jonmtwrp M. H. Gladwin, Fort Smith S. R. Lwliolllmt, Jt, Fort Smith IJnir,o Nnnwsal Bank, Llllla Rock Callromla COALITION )N Io SAvl OUR f FICA TAXES Nation With, Amo Brake, Simi Valbry Natural Landeeryra, Inc., Santa Mwiea Florida North American me y,,. ,, nlnn`S.TCorp., Inglawom Odin Data e, Inc., Sen Ko ABC Bookkeoping & To, Sarvica, Miami Shproa ARA Construction, Coral Gables b Gln lu Olde EnMidr Cleaners, Gl & Lo Provident Federal Savings & Loan, Rivanida Alexander Grant & Company, Tampa Autotach, Inc., Ft. Walton Beech Purcell Temporaries, Banner Builder Supply Co., Pensacola R. T. rd J. Company, n Jim V,Iloy , C stro Valley Richard J. Monahan, San Joee C & P Plastics, In.. Hallandale Coulkins Land Development Ltd., Indiantovm Robert M. Larson, CPA, Walnut Creek Rolle Anderson & Rolle, Chico Citizens Federal Savings & Loan, Jacksonville City of Lynn Haven thsom my Farm, Santa Marla City of Tamarac iKnmanle Shoat Metal Mrg, Co., Sacramento iPeciali:ed Manalement Support, Garda, Grove Florlde Pneumatic Manufacturing Co., Boynton Beach Prechion Metal Services, Inc., Ft. Pierce ilondarrl LOW, Inc., Sento Ane Italowlrkt Mullings Corp., C,o,Jhoel Rosier Machinery Co., Tampa Stockton, Whatley, Osvin& Co., Jacksm,lln. itaphen Monis, Cmconl ilix-fur Life, Los Antilles Turner, Greene & Norman, CPA's, Ocala U. S. Homes, Naples ummit C'niosch , Roll Bhdl, uperior Fol Fnlght,Los Antilles W. D. DYPullf & Sons, Inc., SI. Aureutlnn Colorado David F. Low, CPA, Menlo Park Peter DN Dealing Be" Products, Inc., Burbank Placemen Dbo is Tax Servlu, Le Mirada RJN Can E.yP.S<hrpMr, P.A. of Pm Sprlr na Inc Laguna Hills Rainbow The Art EI Calori Valley Convalescent Closer, EI Cajon Trade Grl ., Enniss Enterprises, Inc., EI Cajon Village In " Excell Electrlal Supply Co., Sun Valley Yellow Cr B Executive Bainm Management, Beverly Hill, g' Featherweight products GI d I creta Cp., Los Angolna mPlm Oeurgla national, Inc, San Francbco cant Center. Venture lop. Orinda rlmont Diamond Mmulscturing Co., Inc, Savannah aIle Co., Los Banco Equifax Inc., Atlanta :., Beaumont IBM. Atl.nr. vy, Inc., Builder nut [IM Pacul Co., Albany Illing Cu., Donver Sandy Splints Hands, Atlanta I Company, Whosoldge United Colton Gomh Co., Griffin aver CM Products Inc., Like Zurich City of Pontiac N., Denver 'A, Denver Newall rales, Denver Francis Wendell, Honolulu nicetim, Group, Inc„ Domer Universal Corporation, Honolulu ,of Lao Block Art fill Advertising. Inc., Chicago nr.r. _._._. .. ver mction, Greeley Idaho Ivw Institute, Inc„ Boulder Agro West Inc., Bolre Spudnik Equipment Co., Blackfoot City on so Fortune Emerprifal Inc., La Angeles Copr,ecilcutt {` Gail Denim, CPA, San Marino Green Thumb Nunn iet, Inc, EI Cam Irving Michaagehll$ & Co., Inc., New Haven Greyhound Exposition Benicia, Santa Fe Spring, Nelson Fill WMZ ManurscmrIty'ing Co., Inc.,oocEclle at Hartford Hiland Vending Co., Bedding Intonational Rubber & Supply. Colton Jacobs. Scharlins, BolmutZ ah & insm, Sherman Oak, D@lmul Jame W. 5leglried, Redondo Beach W i Jm A. Merle & Co., Yuba City Peterson Advnrlhing Agency. Wilminulm t, Kevax Clurmallon, Foster City The Slow, Trust Co., Laurel Killer) Lid. Vnmuras, Romona !' Lothar, fill& Aetocixlea, Fremo Maxmry Builikul Inc, Lot Angeles {' Michell Tniger & Company, Encino Mull. Wise & Richards, Fresno n MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS a DES MOINES loan h, Pannell CPA, Schaumburg Roger A. Colmark, CPA, Sterling Rogers & Clark Mental. Co., Rock lord Trinity Bronco, luc., Chic.rgo Waller E. Drurhlnr Astocinoo, Aunn,r Illinois ,mer Avico, Ltd., Wheeling h Corp„ Boulder rand Junction Blackman, Kallick, Chim, Blurs Cross Blues Shield, Chicago Idama, Arvada CM Products Inc., Like Zurich City of Pontiac to yet Cullam-Davis Library, Peelle I Group, Boulder D. E. Hoagland, Accountant. Robinson Fastron Co., Franklin Perk M Dist., Denver Dense First Property Manegqeemant Corp., Chicago Hewitt Aesoclalae, Llncolnshlre it 'octal, Inc., Domer Lao Block Art fill Advertising. Inc., Chicago nr.r. _._._. .. on so Fortune Emerprifal Inc., La Angeles Copr,ecilcutt {` Gail Denim, CPA, San Marino Green Thumb Nunn iet, Inc, EI Cam Irving Michaagehll$ & Co., Inc., New Haven Greyhound Exposition Benicia, Santa Fe Spring, Nelson Fill WMZ ManurscmrIty'ing Co., Inc.,oocEclle at Hartford Hiland Vending Co., Bedding Intonational Rubber & Supply. Colton Jacobs. Scharlins, BolmutZ ah & insm, Sherman Oak, D@lmul Jame W. 5leglried, Redondo Beach W i Jm A. Merle & Co., Yuba City Peterson Advnrlhing Agency. Wilminulm t, Kevax Clurmallon, Foster City The Slow, Trust Co., Laurel Killer) Lid. Vnmuras, Romona !' Lothar, fill& Aetocixlea, Fremo Maxmry Builikul Inc, Lot Angeles {' Michell Tniger & Company, Encino Mull. Wise & Richards, Fresno n MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS a DES MOINES loan h, Pannell CPA, Schaumburg Roger A. Colmark, CPA, Sterling Rogers & Clark Mental. Co., Rock lord Trinity Bronco, luc., Chic.rgo Waller E. Drurhlnr Astocinoo, Aunn,r Indiana ARCO Engineering, Elkhart Edward H. Schmidt & Sons, Indianapolis Erincraft Mfg. Co.. Michigan City Hi FI Buys, Indianapolis James L. Watt, Highland Jasper Rubber Products, Inc., Jasper Rennes Express Inc., Indianapolis Sluinq Air Inc., Anderson Syndicate Sales, Inc., Cocomo Iowa Bob Allen Companies, On Moine, G. L. Larson Company, Sioux City Johnson Gas Appliance Co., Cedar Rapids MMM Inc., Do Moines MAST Development Company, Davenport M. A, Ford Mlq. ,Inc., Davenport M & M Livestock Products, Eagle Grove Mardtall Office Supply Co., Marshalltown W. J. MarWl & Suns, Davanporl Wdum O'Brian Garen Krnmay Inc., Newlon Kansas In & Our Wan, & Lulw, Hutchinson, 1`4nsns'aale,'1 elahbnm Company, Baxter Springs LUe,'W. Sandt"n, Ptairie Village Sierra Pn nimun Co., Inc., Wichita Siurnl Rnherry, Wichita Kentucky American Family Security insurance, Lexington City of Flemingtburq County of Ohio Doe Valley, Inc., Brandenburg H. B. Stacey, Inc., Bearer Dam Louisiana Anninq Building Company, Lake Charles Buller Realty Inc., Ville Platte Commeshl Furnishings, Inc., New Orleans Darnall & Brodelon, Lid., Lafayette Durham & Hulsey, Monroe Fortier & Morris, Houma Geriatrics, Inc., Sulphur Lamer Corporation, Beton Rouge Livingston Oilwell Services, Inc., Houma Michol Enterprises, Lai site National Education and Enminution, Shreveport N0.0% Conuaclum, Balm Rouge Paul lollnan Finance Cu., Plaiuemine Pellerm Laundry Machinery Sales Co., Kenner Roliaida Finance Co., Inc., Monrpe Rueter Ra Manufacturing Co., Inc., New Orleans Riven Insurance Agency, Monro fi W. E. Puke Lumber Co., Newallton C Maim i' Contractor Group, Augusta Maine National Bank, Portland C Twin City Packing Company, Inc., Lewiston Mayland r Bwuhd Maum,Y.Inc., Clinton finmm�l fhulnnu S,nviun, flrK.kvlllu Massachusetts Bay State Gas Co., Canton Brimfield Precision, Inc., Brimfield Channing L. Bate Co., Inc., Greenfield Chomerks, Woburn DATA TECHnology, Inc., Woburn Engineering & Sales Associates, Inc., Westfield Fenwal Inc., Ashland Llama Trading Co., Inc., Greenfield MarnuJemenl Improvnnenl, NuWham Matterhorn Restaurant Corp., Burlington Michigan Acme Rail Forming Inc., T Boston Laming James Lawlor & Aascclate,. Inc., Lanoing Kann Krsmn Invntmanl, Detroit Lanthlor Foundry & Machine Co., Oxford Malnki Music, Inc., Grand Rapids Peopin National Bank & Trust, Bay City Polco, Inc., Comstock St. Mary's Hospital, Saglnaw Shively Brothers Inc„ PFlint Soil & Materials Engineers, Inc., Livonia Minnesota Cann Co Shoe, Inc., Stillwater Glaunnaler, Sets & Co. Ltd., Rochester HIII Wood Products, Inc., Cook Martin Auto Livery Inc., St. Paul Modernistic Die Cutting Inc, St Paul Redwing Nursing Harris, Redwing SLOW Collets, Northfield Maims Beauty Salome, Ins., Minneapolis TCI Inc., Benson Ward Bell, Minneapolis Mississippi City of Morton County of Perry Delta Medlin Canter, Granville Thorns, E. Lan, Jr., CPA, Columbus Mlaaouri Warrensburg Columbia ).,St. Louis mls Ilannll xnrl Onndoll, Ilx,prnnwn Monona j Handnlpin Cmws, Beltfmurn Lyon 011,Shelby I Bolin Mill Supply, Kalispell Nebraske 'i James J. Boyle, Omaha Phelps Memorial Health Center, Holdsge MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS a DES MOINES Nesods BTT, Las Vegas First National Bank of Nevada, Reno Great American Airways Corp., Reno MGM Grand Hotel, Lao Vegas Scenic Airlines, Inc, Ln Vegas New Hampshire Klarmann Rulings, Inc., Manchester Now Jimmy Arrow Group Industries, Pompton Plains Borough of Little Silva Bar" of Pompton Lakes City ogh Newark County of Burlington Club, Florham Park , Clerk m.. Newark New Moxko Juscu, Inc., Formlmpon Nolen H. Brunson, Inc., liabM The Data Shop Inc., Albuquerque New York Carpenter Rigging & Contracting, Syracmue City of Hudson Clifton Spgs. Hospital & Clinic, Clifton Spg North Carolina Yrrylown A. R. & S. Enterprises, Inc., Fayetteville Bobby E. Matthews Construction, Conover City of Melon City or Monro Export Fundamenlalo, Inc., Raleigh Frank Meadows, Rocky Mount H & R Block, Greensboro John Gouge & Associates, Winston Salem Management Improvement Coil). of America, Durham MZcoin Tried, Greendmro kelinq Funtlementale International, RTP Mitchum Supply Co., Chalutle National Swing Doelapmem, Inc., RalanFt Soulheastern Machine & Weldmq, Wdmmgton Tax Contents, Inc., Chadmle Town of Selma Wymnq & Miles Co., Greenslwm 5oq D North Dakota College Agency Management, Inc., Fargo Ohio Arlington Arms Inc., Dayton Aurora National Inc., Berea South Oakota First American Systems, Inc., Rapid City Kearns Machinery Co., Sioux Falls Tennaw American Progressive Life Insurance, Nashville Surkeen Construction Company, Memphis Hartmann Luggage Co., Memphis Sam Camp, CLU, Memphis State Industries, Inc., Ashland City United American Bank, Knoxville Taxes ARCO Indem, a. Inc.. Ahilme, & Inc., Houston Weatherford CPA, EI Pow nt Worth Co., Dallas Ion, Doer Perk restore, Inc., Big Spring San Antonio to Fella notion Paris Vermont Capital City Press Inc., Montpelier Wright & Morrissey Inc., Burlington Virginia City of Charlottewille Christian Broadcasting Network, Virginia Beach Ford & Thomas Insurance Agency, Richmond Imperial Beading Corp., Lynchburg J. S. Mathers, Inc., Waynesboro Mr. Frosty Seafoods Inc., Newport News Overnite Transportation Co., Richmond Pizza Inns of Virginia Inc., Richmond Rosewood Memorial Park, Virginia Beach Tula, Corp., Martinville Washington Gary L. Martin. Inc., PS, Seattle Hadley Properties, Inc., Seattle Maxwells Electric, Spokane Nickell Orchards, Paseros Pizza Halon, Inc., Santa Saaco t Management Inc., Tacoma United Paint Maned. Inc., Spokane Washington, D. C. International Franchise Association Unilud States Service Industries West Vhghd@ Commercial Bank of Bluefield, Bluefield S. S. I. Industries, Huntington Wisconsin D & H Comoosha. Inc.. Now Berlin ioutmn Richland Center Foundry Co., Richland Can Clark E. Loolbourruw, Columbus Suby, Von Haden & Associates, Madison Klein, Inc., Wharton Dan Blake Consultants, Inc., Columbiana Abilene Wick Building Systems, Inc., Madison One Middleton, Cleveland -dit Union, Texarkana Donald Noss, Jr., Grafton Bryan Wyoming Floyd W. Zltert, Clayton Burke Moving & Storage, Cheyenne Pioneer Specialists of Wyoming, Green River s, Inc., Irving LK Restaurants & Motels, Inc., Marion HD, PA, Webster M. W. McMillan Co., Cincinnati] Iry Service, Corpus Cristi Meridian Plastics, Inc., Bymilla s.. Ft. Worth Gerardo Molina Inc., Hato Rey Mester Construction Co., Cincinnati Willie Morales, Rio Piedras - Mueller Electric Co., Cleveland ' Pdazu & Itant Company. Cleveland M., Viaorla } Richman Brothers Co., Cleveland Sleeper insurance Inc., Chrlstleosteed k Sabre Systems Inc., Dayton Shelby Mulu.11 Inwrance, Shelby Snider & Cangxnry, Alhens sawn, rhdycr & Co., Akron Toludyne Monarch RuhlKr, Hartlilla Tire Standard Register Company, Dation a United Steel Fabricators, Sidney Oklahoma Bank of Commerce and Trust Go., Tulsa Central Machine & Tool Company, Enid Continental Plastics, Oklahoma City Hyroap Corp., Oklahoma City Kurtz Kurtz & Associates, Tulsa Mid- Western Life Inwrance, Enid Pmno Welding Supplies, Inc., Oklahoma City Taxes International Co., Oklahoma City United Home Fmxl Disuibulors, Oklahoma City . Crown Ido:kvndl Read, America, Hnmerlrxl Even L. Joan. MO, Prineville Glorybes Honey& Supplies, Eugene Manpower, Inc., Salem Mountain Fir Lumber, Salem Pip N Pancake Inc., Seaddo fl Village Green Corp., Cottage Grove Pennsylvania t Charles Cole Memorial Hospital, Coudersport County of Chester Dailey Respiratory Sala & Service, Pittston Fulton Piano & Organ Co., Johnstown Hanna Transfer Company, Oil City Insalaco's Supermarkets, Inc, Pittston RS Laventhol& Horwath, Philadelphia MANX Inc.. Erie rl Moen Cwl Company, Soonest j; Neldlg flooring Co., 09118510M Hobert J. Meagher, Readers _ S. Clyde Weaver, Inc., East Petersburg Schaffner Mined. Co. Inc., Pittsburgh ei W. S. Egger Dle & Tool, Ridgway o South Carotina Bordello Manufacturing Co., Roebuck ee. City of Greenville n City of Sparlanburg (' Town of Summerville r. 1 \ C. ,4 s I South Oakota First American Systems, Inc., Rapid City Kearns Machinery Co., Sioux Falls Tennaw American Progressive Life Insurance, Nashville Surkeen Construction Company, Memphis Hartmann Luggage Co., Memphis Sam Camp, CLU, Memphis State Industries, Inc., Ashland City United American Bank, Knoxville Taxes ARCO Indem, a. Inc.. Ahilme, & Inc., Houston Weatherford CPA, EI Pow nt Worth Co., Dallas Ion, Doer Perk restore, Inc., Big Spring San Antonio to Fella notion Paris Vermont Capital City Press Inc., Montpelier Wright & Morrissey Inc., Burlington Virginia City of Charlottewille Christian Broadcasting Network, Virginia Beach Ford & Thomas Insurance Agency, Richmond Imperial Beading Corp., Lynchburg J. S. Mathers, Inc., Waynesboro Mr. Frosty Seafoods Inc., Newport News Overnite Transportation Co., Richmond Pizza Inns of Virginia Inc., Richmond Rosewood Memorial Park, Virginia Beach Tula, Corp., Martinville Washington Gary L. Martin. Inc., PS, Seattle Hadley Properties, Inc., Seattle Maxwells Electric, Spokane Nickell Orchards, Paseros Pizza Halon, Inc., Santa Saaco t Management Inc., Tacoma United Paint Maned. Inc., Spokane Washington, D. C. International Franchise Association Unilud States Service Industries West Vhghd@ Commercial Bank of Bluefield, Bluefield S. S. I. Industries, Huntington Wisconsin D & H Comoosha. Inc.. Now Berlin ioutmn Richland Center Foundry Co., Richland Can Houston Suby, Von Haden & Associates, Madison Klein, Inc., Wharton Valley Bancorporation, Appleton Abilene Wick Building Systems, Inc., Madison :art Worth -dit Union, Texarkana Bryan Wyoming . of Houston, Houston Burke Moving & Storage, Cheyenne Pioneer Specialists of Wyoming, Green River s, Inc., Irving Unicover Corporation, Cheyenne West Park County Hospital, Cody HD, PA, Webster Imdton Iry Service, Corpus Cristi Puerto Rim s.. Ft. Worth Gerardo Molina Inc., Hato Rey Inc., Temple Willie Morales, Rio Piedras on Irownwille Virgin Islands M., Viaorla loop Sleeper insurance Inc., Chrlstleosteed San Mtonie, Inc., San Antonio Utah Cellistar, Greene & Moniker, Salt Lake City Dan Han, Ogden Heritage Corporation, Murray Kevin Huntington, Sall Lake City M. Martin & Son Co., Ogden Vdtek, Springville Schotzen Products Co., Inc., Hurricane Sunn Classic Picture, Salt Lake City W. S. Hatch Co., Woodscrns MICROFILMED BY JORM MICR+LA9 CEDAR RAPIDS a DES MOINES 6CA I i MEMBER * Herman Talmadge Abraham Ribicoff Harry Byrd * Gaylord Nelson Mike Gravel Lloyd Bentsen , Spark Matsunaga Daniel Moynihan Max Baucus * Robert Dole k Russell Long, Chairman David L. Boren Hill Bradley John H. Chafee k John C. Danforth 1 David Durenberger John Heinz Bob Packwood William V. Roth, Jr. Mulr.nlm Wallop SENATE. FINANCE COMMITTEE LEGISLATIVE•' ASST. Randy Knuckles John Siegel Ed Beck Scott Ginsburg Nanny MacWood Dexanne L'lohan Fd Ing Ellen Rosen Debbie Landau Linda McMahon Lynn Galt Mike Fogarty Martha Darling Nancy Barrow Nancy Altman Mike Hoon John Burnside Frank Cantrell Joanne Ross Pat Hoff I indicates a Senate Conferee on H. R. 3236 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES M01NES STATE TELEPHONE Ga. (202)224-3643 Conn. (202)224-2823 Va. (202)224-4024 Wis. (202)224-5323 Ak. (202)224-6665 Tex. (202)224-5922 Haw. (202)224-6361 N. Y. (202)224-4451 Mont. (202)224-2651 Kan. (202)224-6521 Louis. (202)224-4623 Okla. (202)224-4721 N. J. (202)224-3224 R. 1. (202)224-2921 Mo. (202)224-6154 Minn. (202)224-3244 Pa. (202)224-6324 Oreg. (202)224-5244 Del. (202)224-2441 Wyo. (202)224-6441 9 n ii Rrr.10N V11 r,Wnd Olhr, Uurl.lin� 911 W.Inu1 511111 Kontos City, Mlnou„ 64106 DEPAnTMENT OF HOUSING AND URDAN DEVELOPMENT SEnvicE or FICE r EUERAL IMILUING, 710 WAI NUI STREET UIS MORILS, IUWA 10709 February 15, 1980 REVISED ALLOCATION PLAN - IOWA IN RC;PLY nbCR 701 The attached Allocation Plan supersedes the plan published January 4, 1980. This plan reflects major changes in the number of dwelling units anticipated, and in some programs reflects a lower level of funding than shown on the January 4, 1980, plan. The number of units now shown should be achievable since last fiscal year's expe- rience, plus a trending factor was used to impute the unit totals, by.:program, shown in each Allocation Area. IMPORTANT TO ALL HOLDERS OF DEVELOPERS PACKETS Holders of Developers Packets for the following Invitations and/or Notifications of Fund Availability (NOFA's) must review the attached Plan to ascertain if the number of living units likely to be funded in the area they intend to submit proposals has changed. Section 202/8 1. IA05-TB01 - Metro Area No. I 2. IA05-T802 1 ) II 1 p - Non -Metro Area i 4. IA05-T804 E Area "South West" 5. Rrr.10N V11 r,Wnd Olhr, Uurl.lin� 911 W.Inu1 511111 Kontos City, Mlnou„ 64106 DEPAnTMENT OF HOUSING AND URDAN DEVELOPMENT SEnvicE or FICE r EUERAL IMILUING, 710 WAI NUI STREET UIS MORILS, IUWA 10709 February 15, 1980 REVISED ALLOCATION PLAN - IOWA IN RC;PLY nbCR 701 The attached Allocation Plan supersedes the plan published January 4, 1980. This plan reflects major changes in the number of dwelling units anticipated, and in some programs reflects a lower level of funding than shown on the January 4, 1980, plan. The number of units now shown should be achievable since last fiscal year's expe- rience, plus a trending factor was used to impute the unit totals, by.:program, shown in each Allocation Area. IMPORTANT TO ALL HOLDERS OF DEVELOPERS PACKETS Holders of Developers Packets for the following Invitations and/or Notifications of Fund Availability (NOFA's) must review the attached Plan to ascertain if the number of living units likely to be funded in the area they intend to submit proposals has changed. Section 202/8 1. IA05-TB01 - Metro Area No. I 2. IA05-T802 - Metro Area No. II 3. IA05-T803 - Non -Metro Area "North" 4. IA05-T804 - Non -Metro Area "South West" 5. IA05-T805 - Non -Metro Area "South East" Section 8 Housing Assistance Payments Program - New Construction 1. IA05-0044 - City of Des Moines only 2. •IA05-0045 '-.Metro Area No. I 3. IA05-0046 - Metro Area No. II 4. IA05-0047 - Non -Metro SIMPCO Area Section 8 Housing Assistance Payments Program - Substantial Rehabilitation 1. IA05-0048 - Metro SIMPCO Area - AHOP Section 8 Preliminary Proposal Submission Deadline Date Section 8 NOFA's currently contain a submission deadline date of February 29, 1980. This deadline date is hereby amended to March 17, 1980. The Section 202/8 proposal submission date remains March 31, 1980. Section 202/8 - Minimum Project Size Developers packets for Notification IA05-T802 - Metro Area No. II and IAO5- T803 - Non -Metro Area "North" contain a statement that the minimum number of units for an elderly/handicapped project shall be 50. (Section I, paragraph 2b (2) on page 2 of the Developers Packet) The minimum size of the project attached Plan, i.e., 47 living units and 48 living units respectively. up homes minimum shall remain at 12 units.) ALLOCATION PLAN FORMAT The format of the attached PLAN has been changed somewhat and now contains the dollar amounts of the Housing Assistance Payments Contract Authority and the Section 202 Loan Authority in addition to the number of living units anticipated in each Allocation Area. It is fully intended that the number of living units funded will be as shown on the Plan, however, the limiting factors will be the Contract Author- ity or Loan Authority shown. Dependent upon the types of construction and locations Proposed, there may be sufficient assistance dollars remaining to fund more than the number of units shown on the Plan. In rare instances, there may be insufficient money to fund the total units shown, however, this should not occur and is fully dependent upon the proposals received. JORM MICRTLAS CEDAR RAPIDS • UES MOINES i I The advertising areas for Fiscal Year 1980 are as follows: 1. Metro SIMPCO - AHOP - Consisting of Woodbury County only. 2. Des Moines - The City of Des Moines alone. 3. Metro Area No. I - Consisting of Black Hawk, Dubuque, and Linn Counties, Iowa. 4. Metro Area No. II - Consisting of Polk (less City of Des Moines), Pottawattamie, Scott, and Warren Counties, Iowa. 5. Non -Metro Area "North" - Consisting of Allamakee, Bremer, Buchanan, Buena Vista, Butler, Calhoun, Cedar, Cerro Gordo, Chickasaw,- Clay, Clayton, Clinton, Delaware, Dickinson, Emmet, Fayette, Floyd, Franklin, Grundy, Hamilton, Hancock, Howard, Humboldt, Jackson, Kossuth, Lyon, Mitchell, O'Brien, Osceola, Palo Alto, Pocahontas, Sioux, Webster, Winnebago, Winneshiek, Worth, and Wright Counties, Iowa. 6. Non -Metro Area "South West" - Consisting of Adair, Adams, Audubon, Boone, Carroll, Cass, Clarke, Crawford, Dallas, Decatur, Fremont, Greene, Guthrie, Hardin, Harrison, Jasper, Madison, Marion, Marshall, Mills, Montgomery, Page, Poweshiek, Ringgold, Sac, Shelby, Story, Tama, Taylor, and Union Counties, Iowa. 7. Non -Metro Area "South East" - Consisting of Appanoose, Benton, Davis, Des Moines, Henry, Iowa, Jefferson, Johnson, Jones, Keokuk, Lee, Louisa, Lucas, Mahaska, Monroe, Muscatine, Van Buren, Wapello, Washington, and Wayne Counties, Iowa. 8. Non -Metro SIMPCO - AHOP - Consisting of Cherokee, Ida, Monona, and Plymouth Counties, Iowa. For further information, please call Des -Moines (515) 284-4687. Sincerely, % Zf J L'V ' /C. Norman C. Jurgens Supervisor { - I CEDAR RAPIDS • DES MOINES i M W O O \I O O G C C O O O0 N 1 N Q M N O m N O 0 m W � ? M N G W rn tD ur yr M m ID O O rr) u N N O W 1, \I a G C C O O O0 N 1 N G C M O O O O n n W W N ? 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Vr i 0 m, m C a)a m•r 7 UUa u o m Z ViNOO i"• VIV)d I 117 O^ ON0co I Z LL m 0 I I I W V1 C •r W iu _E r ~ O VI Vf m r O000 u m J rn M w E m N L m L cl c) V) m rLLF-Inzl� ^ Ln r mi al O �• L O O m mm O 7, L 0 0 m IIc c) m N E r L C Vr CIO O +� L m M d C N L Y L 7 ¢ [D N L p m 0 m O j L L c oJ rOi EN¢ 00 W li ¢ N T O O V) L tD • II C m � r-- V O i m L L M m O 4 LL O N O 0 N O N JO+L•I Mto L01 l•1 OUQ a L r N N 1 L N C m o 0) U o L m A •r cl m a c) O) J � a In N w 0 1 o u cl I 1 m L Q Q O N O Vr W J U 0 I -O u w -I cil s/V i \I a I m U ^ I co 1 CD I W CD 0 a O N 2 O O m 00 •r O •r.r r M Q u n=x UL m uo ¢ ¢ v Q v o n O \ \ O \ CEDAR RAPIDS • DES MOVIES C 00 Z r Z ¢ ¢ r \ \ Vr Z Z V1 w O LD m tD 00 N 1 i \I a I m U ^ I co 1 I W r L 0 a O N 2 N VC m 00 •r W C •r.r r I NI a I m 1 I I Q r L N VC m 00 •r W C •r.r r u n=x UL u -o uo c)c', =ac v w v o JORM MICR+LAS CEDAR RAPIDS • DES MOVIES I NI 4 PROPOS13D CIIAPTPR 413 STUDY SILL 1. Chapter 413, Code of Iowa, is hereby repealed. 2. In lieu of Chapter 413, the following chapter is proposed: I. Applicability. This chapter shall be known as the State Housing Law and shall apply to every city which, by the last federal census, had a population of 15,000 or more, and shall apply to any dwelling in any area adjacent to and within one mile of such municipalities, except estates of real property of ten acres or more in said adjacent area, and to every city as its population shall reach 15,000 thereafter by a federal census. II. Enforcement of State Housing Code. The Housing Officer, or such other appropriate public official as the mayor may designate, shall be responsible for and shall enforce the local housing ordinance as adopted and shall cause inspections to be made of every multiple dwelling as required in the local housing ordinance. Such inspections shall include thorough examination of all parts of such multiple dwellings and the premises connected therewith. The Housing Officier or such other official so designated is also hereby empowered to make similar inspections of all dwellings as frequently as may be necessary and may make inspections at any reasonable time on complaint of the owner, tenant, or other person concerned. Cities may establish a schedule of fees which fee shall be based upon the actual cost of inspection, enforcement, and administration of the provisions of this section relating to multiple dwellings. III. Recommended minimum standard. The provisions of the Uniform Housing Code as adopted by the International Conference of Building Officials, and as amended and updated from time to time, are recommended to the municipalities affected as a minimum standard for loc@1 housing ordinances. The recommended minimum standard will not be mandated to local communities and local communities can make variances and additions and deletions to the Uniform Housing Code as deemed appropriate. MICROFILMED BY JORM MICR#LAB CEDAR RAPIDS • DES MOINES N RECEIVED -FEB 2 1 11,ij FEBRUARY 11, 1980 PRESENTATION BY MARK T. HAMER ATTORNEY FOR IOWA CITY APARTMENT ASSOCIATION PUBLIC HEARING ON }LOUSE STUDY BILL 638 Chapter 413 and the implementing or expanding ordinances in the cities of Iowa are specific in detail. However, to pro- vide effectively for the protection of health, safety and sanitation, the law must not only be detailed, but must be current and consistent. House Study Bill 638 is an effort to provide additional strength to Chapter 413 and to encourage further enforcement of the specific and detailed sections thereof. A previous speaker has spoken on behalf of the Iowa City Apartment Association in opposition to House Study Bill 638. I, too, am speaking on behalf of the Iowa City Apartment Association, a group of 160 apartment owners, who have ex- perienced the vigorous enforcement in annual inspections under the current Housing Code and the Iowa City Housing Ordinance. That experience has shown us that effective en- forcement cannot start with a basis of enforcement which is an antiquated law, such as Chapter 413. The experience in Des Moines and Waterloo with the non -enforce- ment of Chapter 413 as expressed by previous witnesses, further supports our feeling that Chapter 413 is an ineffective law. On behalf of the Apartment Association, therefore, we propose the following: 1. A wholesale review of Chapter 413, in conjunction with representatives of local government, apartment owners, tenant organizations, the Iowa State Bar Association, builders associations and others deemed to be interested, with a view to adopting the Uniform Housing Code. The Uniform Housing Code may be the answer, but in addition, the interplay between state and local laws must be addressed and specific guidelines for enforcement established. The Iowa City Apartment Association believes that any review of Chapter 413 must contain a section by section analysis of the need for grandfathering with regard to existing housing. In addition, the Iowa City Apartment Association believes that there should be a limitation on the involvement of state personnel. MICROFILMED BY JORM MICR+LAB k CEDAR RAPIDS • DES MOINES In addition, the Iowa City Apartment Association believes that any review of Chapter 413 must establ.irh a procedure for variance and the authority for local governments to grant variances where applicable. In addition, the Iowa City Apartment Association believes that any revision to Chapter 413 must contain reasonable time re- strictions and limitations for enforcement. This approach could be taken. However, as has been mentioned on many occasions, study bills, conferences, legislative reviews and the process of reorganizing a legislative program take time. A wholesale review of Chapter 413 would be extremely time con- suming and difficult process and in our view, a wasted one. 2. Therefore, the Iowa City Apartment Association proposes that the committee, in lieu of House Study Bill 638, work to- ward a simplified Housing Code. It is our view that a simplified Housing Code need provide only three sections. These would in- clude: A. A provision similar to §413.1 mandating activity on the part of cities in Iowa with a population in excess of 15,000. This section would mandate that these cities adopt a local Housing Code. B. A provision similar to §413.123 mandating the enforcement of the Housing Code adopted by the cities. The problems which gave rise to House Study Bill 638 could be addressed in this section. C. A provision establishing a minimum recommended standard for local Housing Codes. Rather than outlining the individual guidelines, the Apartment Association could propose the provisions of the Uniform Housing Code as the recommended minimum standard. This would automatically be updated as the Uniform Housing Code is updated. In support of this simplified Housing Code concept, it is the position of the Iowa City Apartment Association that the State of Iowa is not currently involved in the direct administration of or enforcement of the Housing Laws of the various communities or Chapter 413. In addition, it is clear that the State of Iowa is not interested in nor capable of direct administration and supervision of the local Housing Laws or Chapter 413. In addition, it is clear that the State of Iowa is not in a position to determine local community needs, resources and housing stock availability and should not, therefore, write a specific, de- tailed law dealing with this subject, without local variance -2- MICROFILMED BY JORM MICR¢LAB CEDAR RAPIDS • DES MOINES d r authority. The State of Iowa has not demonstrated during the Past 50 years that Chapter 413 has a high priority for legisla- tive amendment or review and any amendments or changes to the Housing Code have come only after long and extensive efforts. With this proposal in mind, the Iowa City Apartment Association has requested that I speak specifically in opposition to House Study Bill 638. In particular, the Apartment Association opposes il of n ourF1opinionouse ,�dwillll 63. 'The creaton of a create additional1bureaucracysongtherState level without providing for any effective remedy for City officials who choose not to or are unable to enforce the Housing Code. There is nothing in 91 that, in our opinion, creates additional Power over city officials to provide compliance with the Housing Code. In addition, the influence of State officials on local Housing officials will be such that local options and local variances will be reduced and the Housing Code will become less effective. In addition, I do not believe that 91 is necessary. The Iowa City Apartment Association authorized in January a study of the question of the enforcement of the Housing Code by Iowa City officials. That study revealed that the City of Iowa City, as well as any other municipal corporation, has a duty to enforce the Housing Code and a liability in the event of non -enforcement. Specifically, cities are liable for the actions of their employees who breach a statutory or common law duty, as set forth in Chapter 613A. The duty to comply in the Housing Code enforcement area is clear. The Code clearly specifies in §413.123 that there shall be inspections of every multiple dwelling at least once a year. The question of the discretion of such an inspection was put to the Iowa Attorney General and on April 6, 1977, the Attorney General in Opinion #77-4-9 indicated that §413.123 mandates an inspection of every multiple dwelling at least once a year for those requirements within Chapter 413. The Opinion pointed out that S103A.18(1) gives the governmental subdivisions discretion in relation to the State Building Code and under the State housing Code the City is not mandated to inspect in furtherance of its own Building Code or its own Housing Code. However, the Opinion and the statute are clear that a city has a duty to inspect multiple housing units once each year in furtherance of the State Housing Code. ' Where a city chooses not to follow this mandate, the city will be held liable where the lack of enforcement is a cause of injury or damage. The City of Des Moines for example, was held liable in the case of Wilson v. Ne2stad, 228 NW2d 664(Iowa 1979). This case dealt with a major fire and does not go so far as to indicate any direct liability in the event of minor defects. however, with the existance of the statutory and common law duty on the city to en- force the housing Code there is a clear mandate towards enforce- rnent and the Iowa City Apartment Association believes that 91 -3- MICROFILMED BY JORM MICFV+LAB CEDAR RAPIDS • DES MOINES G of House Study Bill 638 is, therefore, unnecessary in this area. The question was also raised as to the requirements of City officials to enforce the Housing Code. While there are no criminal sanctions available to be applied against individual City employees who do not comply with the mandate for enforcement of the housing Code, in the case of H_arryman v. 1laYlas, 257 NW2d, 631 (Iowa 1977), the Court held that an inr7ividual employee could also be held liable for negligence if the governmental sub- division could be found liable under Chapter 613A. Thus, while there are no criminal sanctions, there does appear to be a civil liability to individual employees for non-compliance with the Housing Code mandates. There is no sovereign immunity where liability may exist under Chapter 613A. In addition, there does appear to be a common law duty for City employees to comply with duties of their office, namely, the enforcement of the annual inspections in the enforcement of Chapter 413. Finally, there do appear to be certain available remedies where local officials do not enforce Housing Code provision. A writ of mandamus could be sought to compel the city officials to comply with their statutory duties. In addition, tenants organizations could apply for an injection to stop the issuance of an occupancy permit by the city where the city had not complied with the statutory duty for an inspection under the State Housing Code. An injunction could be sought barring the landlord from renting a property where the housing occupancy permit had not been granted or where the property had been "red tagged". In review, therefore, it is the position of the Iowa City Apart- ment Association that §1 in its very essence is an unnecesary provision. State Housing officials are not required; although there is no particular opposition on our part to a State Housing official to monitor compliance. With regard to 53 of House Study Bill 638, it is the position of the Iowa City Apartment Association that the 60 day limitation for repairs is unreasonable. Previous testimony has indicated the range of problems that can occur, especially with major or structural violations. However, that is not the major concern. The last sentence of 53 provides "until the ordered work is com- pleted, rent shall not be collected from any Lessee of the property." The Iowa City Apartment Association adamantly opposes this provision. Ordered work as set forth in this sentence clearly refers to the discovery of a violation by a health officer and the initial order that that violation be remedied within a reasonable amount of time. If rents become uncollectable upon the initial dis- covery and order for a remedy to a violation, the landlord has no effective recourse. In addition, however, it appears obvious -4- % MICROFILMED BY JORM MICR+LA9 CEDAR RAPIDS • DES MOINES that where violations are sited for repair and those violations are not significant or health or safety related, a tenant may choose to frustrate the attempts at compliance in order to continue occupancy without paying rent. Further,the resources required to make the repairs will be taken from a landlord if rent is withheld. A better solution is the rent escrow program as it exists in the City of Iowa City. In summary, the problems related to housing in the State of Iowa cannot and will not be met by Study Bill 638. What is needed is local control of the housing problem, with effective incentives and the repeal of Chapter 413. -5- MICROFILMED BY DORM MICR+LA6 .;i CEDAR RAPIDS • DES MOINES D i I I I I j i y I >i i i that where violations are sited for repair and those violations are not significant or health or safety related, a tenant may choose to frustrate the attempts at compliance in order to continue occupancy without paying rent. Further,the resources required to make the repairs will be taken from a landlord if rent is withheld. A better solution is the rent escrow program as it exists in the City of Iowa City. In summary, the problems related to housing in the State of Iowa cannot and will not be met by Study Bill 638. What is needed is local control of the housing problem, with effective incentives and the repeal of Chapter 413. -5- MICROFILMED BY DORM MICR+LA6 .;i CEDAR RAPIDS • DES MOINES D i I W MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS DECISION UNIT: ADMINISTRATION QUARTER: SECOND FY80 FISCAL YEAR OBJECTIVES: I. To coordinate construction of downtown urban renewal projects with completion of Block 64 garage by May, 1980. 2. To complete second phase of service building construction by June, 1980. 3. To energy retrofit Civic Center by July, 1980. 4. To start construction of Ralston Creek south branch storm water detention basin by August, 1979. WORK COMPLETED: 1. Construction underway. 2. On schedule. 3. Study completed. Awaiting Council action. 4. Construction start planned May, 1980. ANALYSIS: These projects present unusual problems of funding, coordination or public input. Expenditures Budget Year -to -Date % 6000 45,579 24,055 53 7000 660 154 P3 8000 6,140 6,761 110 9000 0 0 0 Total 52,379 30,970 59 MICROFILMED BY JORM MICR+LA9 CEDAR RAPIDS • DES MOINES f ■ i d t+ G le �i k' � f W MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS DECISION UNIT: ADMINISTRATION QUARTER: SECOND FY80 FISCAL YEAR OBJECTIVES: I. To coordinate construction of downtown urban renewal projects with completion of Block 64 garage by May, 1980. 2. To complete second phase of service building construction by June, 1980. 3. To energy retrofit Civic Center by July, 1980. 4. To start construction of Ralston Creek south branch storm water detention basin by August, 1979. WORK COMPLETED: 1. Construction underway. 2. On schedule. 3. Study completed. Awaiting Council action. 4. Construction start planned May, 1980. ANALYSIS: These projects present unusual problems of funding, coordination or public input. Expenditures Budget Year -to -Date % 6000 45,579 24,055 53 7000 660 154 P3 8000 6,140 6,761 110 9000 0 0 0 Total 52,379 30,970 59 MICROFILMED BY JORM MICR+LA9 CEDAR RAPIDS • DES MOINES f ■ n MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS QUARTER: SECOND FY80 DECISION UNIT: ENGINEERING FISCAL YEAR OBJECTIVES: 1. Analyze the time keeping records established in FY78 and FY79 to determine how the division budget is used among construction projects, subdivisions, interdepartmental requests, and citizen requests by March, 1980. This would help to determine an amount of charge back for subdivision work in the event it becomes necessary as well as to better schedule projects and priorities. 2. Coordinate the design process of the new Waste Water Treatment Plant enabling an application for a construction grant by July, 1980. 3. To complete the construction of South Gilbert Street during the 1979 construction season. WORK COMPLETED: 1. Complete, the report was submitted to Council in the spring of 1979. 2. Design has not begun. This project is about 1 year behind. 3. Construction will not start until Spring 1980. ANALYSIS: 2. Because of changes required by EPA, no work has yet progressed on the design of the new plant. 3. Right-of-way acquisition problems have stalled this project. Expenditures Budget Year -to -Date % 6000 210,429 101,142 48 7000 6,810 3,368 49 8000 26,592 10,810 41 9000 1,043 863 83 Total 244,874 116,183 47 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES c, I MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS DECISION UNIT: EQUIPMENT DIVISION QUARTER: SECOND FY80 FISCAL YEAR OBJECTIVES: 1. To specify and procure equipment which will provide long and dependable service to the City. 2. To maintain this equipment in such a way as will extend the economic life to the maximum extent possible at minimum cost. 3. To perform equipment replacement analysis on a piece -by -piece basis to provide solid rationale for equipment replacements. WORK COMPLETED: I. Plow/dump trucks specified. Bids to return February 7, 1980. Mostly light-duty specifications so far with the exception of a three -wheel street sweeper. 2. Excellent results particularly in refuse collection. Instead of buying three new trucks we are keeping the old ones and in fact selling one of the six because we do not need two spares. 3. We have vehicles and equipment whose operating costs are very high. During the FY81 budget process we will be concentrating on this type of equipment and on few items of equipment where we can show rebuilding would not provide an adequate return in service life. ANALYSIS: Outlook is very encouraging. With our night shift we are able to provide fast reaction to vehicle defects so that we can extend the life of most items of equipment and undertake early replacement of our very poorly specified equipment. The very low figure below on 9000 -results from our decision to run out our old garbage trucks rather than to replace them prematurely. We feel that there is A -2h years service left in them. The high 7000 figure is due to fuel cost. Expenditures p Year -to -Date % u 241,942 111,418 t 7000 522,077 361,884 69.3 8000 �i 42,542 47.8 9000 183,860 52,828 kl Total 1,036,748 F E t. sl it I MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS DECISION UNIT: EQUIPMENT DIVISION QUARTER: SECOND FY80 FISCAL YEAR OBJECTIVES: 1. To specify and procure equipment which will provide long and dependable service to the City. 2. To maintain this equipment in such a way as will extend the economic life to the maximum extent possible at minimum cost. 3. To perform equipment replacement analysis on a piece -by -piece basis to provide solid rationale for equipment replacements. WORK COMPLETED: I. Plow/dump trucks specified. Bids to return February 7, 1980. Mostly light-duty specifications so far with the exception of a three -wheel street sweeper. 2. Excellent results particularly in refuse collection. Instead of buying three new trucks we are keeping the old ones and in fact selling one of the six because we do not need two spares. 3. We have vehicles and equipment whose operating costs are very high. During the FY81 budget process we will be concentrating on this type of equipment and on few items of equipment where we can show rebuilding would not provide an adequate return in service life. ANALYSIS: Outlook is very encouraging. With our night shift we are able to provide fast reaction to vehicle defects so that we can extend the life of most items of equipment and undertake early replacement of our very poorly specified equipment. The very low figure below on 9000 -results from our decision to run out our old garbage trucks rather than to replace them prematurely. We feel that there is A -2h years service left in them. The high 7000 figure is due to fuel cost. Expenditures Budget Year -to -Date % 6000 241,942 111,418 46.0 7000 522,077 361,884 69.3 8000 88,869 42,542 47.8 9000 183,860 52,828 28,7 Total 1,036,748 568,672 54.9 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES Sill! al ; MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS DECISION UNIT: WATER QUARTER: SECOND FY80 FISCAL YEAR OBJECTIVES: 1. To flush all city owned hydrants by June 1981, to remove sedimentation from the system. 2. To install 1,000 Outside Remote Readers by June, 1981. 6,800 have been Installed with approximately 4,500 more to be installed. 3• Keep meter reading on schedule. 4. To continue to treat all water to meet the requirements of the Iowa Department of Environmental Quality. WORK COMPLETED: I. All hydrants on ends of mains have been flushed. 2. Have installed 460 outside readers since the start of FY80. 3• Meter reading has been on schedule the first 6 months of FY80. 4. We are meeting all requirements of the Department of Environmental Quality. ANALYSIS: I. Water usage for the first 6 months of FY80 was up about 3% over the first 6 months of FY79. 2. We are laying water mains in new subdivisions, total Of 19,000 feet in FY80 and we had 26 main breaks. Expenditures Budget Year -to -Date % 6000 353,133 174,419.41 49.392 7000 180,350 82,467.60 45.72 8000 262,591 119,154.33 45.376 9000 231.950 165,255.50 71.248 Total 11028,024 541,296.84 52.70 MICROFILMED BY r JORM MICR+LAB 1 CEDAR RAPIDS • DES MOINES M "i t! MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS DECISION UNIT: WATER QUARTER: SECOND FY80 FISCAL YEAR OBJECTIVES: 1. To flush all city owned hydrants by June 1981, to remove sedimentation from the system. 2. To install 1,000 Outside Remote Readers by June, 1981. 6,800 have been Installed with approximately 4,500 more to be installed. 3• Keep meter reading on schedule. 4. To continue to treat all water to meet the requirements of the Iowa Department of Environmental Quality. WORK COMPLETED: I. All hydrants on ends of mains have been flushed. 2. Have installed 460 outside readers since the start of FY80. 3• Meter reading has been on schedule the first 6 months of FY80. 4. We are meeting all requirements of the Department of Environmental Quality. ANALYSIS: I. Water usage for the first 6 months of FY80 was up about 3% over the first 6 months of FY79. 2. We are laying water mains in new subdivisions, total Of 19,000 feet in FY80 and we had 26 main breaks. Expenditures Budget Year -to -Date % 6000 353,133 174,419.41 49.392 7000 180,350 82,467.60 45.72 8000 262,591 119,154.33 45.376 9000 231.950 165,255.50 71.248 Total 11028,024 541,296.84 52.70 MICROFILMED BY r JORM MICR+LAB 1 CEDAR RAPIDS • DES MOINES M I 1 MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS DECISION UNIT: REFUSE QUARTER: SECOND FY80 FISCAL YEAR OBJECTIVES: 1. To continue lowering refuse pickup costs by replacing two or more rear loading packers with single operator side loading vehicles by November, 1979. 2. To recycle newsprint at the most economical cost. WORK COMPLETED: 1. It has been noted that a two-man packer is more economical than a one- man side loading vehicle; therefore, this objective is no longer applicable. 2. This program is being phased -out as of July 1, 1980. Expenditures Budget Year -to -Date % 6000 151,115 82,210 54.4 7000 1,079 593 55.0 8000 127,612 70,318 55.1 9000 78,834 29,924 38.0 Total 358,640 183,045 51.0 MICROFILMED BY JORM MICR+LAB F CEDAR RAPIDS • DES MOINES !"1 MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS DECISION UNIT: LANDFILL QUARTER: SECOND FY80 FISCAL YEAR OBJECTIVES: 1. To ensure revenues equal expenses. 2. To operate landfill in compliance with State landfill regulations. WORK COMPLETED: I. The landfill is meeting this goal. 2• We are meeting Department of Environmental Quality regulations. Expenditures Budget Year -to -Date _% 6000 84,426 36,582 43.3 7000 12,150 4,054 33.4 8000 45,189 23,785 52.6 9000 37,176 19,205 51.7 Total 178,941 83,626 46.7 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES gg� R _ r !"1 MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS DECISION UNIT: LANDFILL QUARTER: SECOND FY80 FISCAL YEAR OBJECTIVES: 1. To ensure revenues equal expenses. 2. To operate landfill in compliance with State landfill regulations. WORK COMPLETED: I. The landfill is meeting this goal. 2• We are meeting Department of Environmental Quality regulations. Expenditures Budget Year -to -Date _% 6000 84,426 36,582 43.3 7000 12,150 4,054 33.4 8000 45,189 23,785 52.6 9000 37,176 19,205 51.7 Total 178,941 83,626 46.7 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS QUARTER: SECOND FY80 DECISION UNIT: STREETS FISCAL YEAR OBJECTIVES: 1. To continue converting the operational methods of the Street Division toward planned, expeditious, and economical work programs rather than a complaint oriented operational strategy. 2. To reinventory the condition of the street system and related facilities in September, 1979 in order to present a long-range guide to future reconstruction needs prior to the preparation of the FY81 budget. 3. To continue concentrating on the higher priority trafficways and bus routes and to progress on the repair of residential streets consistent with available funding. WORK COMPLETED: 1. Approximately 50 to 60, percent of planned work can be accomplished. High priority requests from citizens, Council, and department and division heads accounts for the other 40 to 45 percent of the work effort. 2. Because of a lack of funding, the Street Division is operating on a year-to-year basis rather than a long-range basis. 3. This is continuing to be carried out. Expenditures Budget Year -to -Date % 6000 279,342 136,356 48.8 7000 165,681 119,974 72.4 8000 226,061 93,038 41.2 9000 92,640 70,745 76.4 Total 763,724 420,113 55.0 MICROFILMED BY JORM MICR+LAB 5 i' CEDAR RAPIDS • DES MOINES I ■ n MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS DECISION UNIT: TRAFFIC CONTROL QUARTER: SECOND FY80 FISCAL YEAR OBJECTIVES: I. Continued reduction of signal reduction and street light corrective maintenance call outs. 2. Continued aggressive signal controller preventative maintenance. 3. Continued traffic and accident analysis to determine needs and problems and propose corrective action. 4. Convert street lighting at Keokuk & Hwy. 6 intersection from high voltage mercury-vapor to sodium vapor by June 1980. WORK COMPLETED: I. Down 10.3% from previous quarter, up 48.7% over second quarter FY79. 2. 25 hours of controller maintenance performed second quarter, equal to second quarter FY79; program on target. 3. Program ongoing on schedule. 4. No work completed, scheduled third and fourth quarters. Expenditures Budget Year -to -Date % 6000 145,610 62,546.13 43_ 0 7000 69,376 13,742.69 19.8 8000 148,213 83,769.21 56.5 9000 20,688 17,032.88 _ 82.3 Total 383,887 177,090.91 46.1 MICROFIL71jDORM MCEDAR RAPIDS m ii 0 r n MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS DECISION UNIT: TRAFFIC CONTROL QUARTER: SECOND FY80 FISCAL YEAR OBJECTIVES: I. Continued reduction of signal reduction and street light corrective maintenance call outs. 2. Continued aggressive signal controller preventative maintenance. 3. Continued traffic and accident analysis to determine needs and problems and propose corrective action. 4. Convert street lighting at Keokuk & Hwy. 6 intersection from high voltage mercury-vapor to sodium vapor by June 1980. WORK COMPLETED: I. Down 10.3% from previous quarter, up 48.7% over second quarter FY79. 2. 25 hours of controller maintenance performed second quarter, equal to second quarter FY79; program on target. 3. Program ongoing on schedule. 4. No work completed, scheduled third and fourth quarters. Expenditures Budget Year -to -Date % 6000 145,610 62,546.13 43_ 0 7000 69,376 13,742.69 19.8 8000 148,213 83,769.21 56.5 9000 20,688 17,032.88 _ 82.3 Total 383,887 177,090.91 46.1 MICROFIL71jDORM MCEDAR RAPIDS m MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS DECISION UNIT: MASS TRANSIT FISCAL YEAR OBJECTIVES: QUARTER: SECOND FY80 I. To allocate resources in a manner that maximizes our ability to carry passengers during the peak rush-hour periods. 2. To improve operations by reorganizing management functions and codifying policies and procedures. 3. To pursue Federal and State grants as expeditiously as possible. 4. To build off-peak ridership through increased transit marketing. WORK COMPLETED: 1. Revised routes and schedules went into effect 8/27/79; further improvements are scheduled for implementation this spring. Bus stop signs have been installed to improve rush-hour schedule adherance. Ridership is up 15-20% over last year, so problems remain. 2. A second MW II has been hired to alleviate scheduling problems on the evening service crew. Clerical responsibilities have been reorganized to even out office staff workloads. The Senior Driver and one veteran operator attended an UMTA-sponsored "training -the -trainer" program in November. An assistant transit manager position has been approved, but not yet filled. 3. The Iowa City - Coralville - Cambus - Johnson County SEATS UMTA grant application is complete, and currently under review by the UMTA regional office in Kansas City. Vehicle specifications are being drafted by the participating agencies. Our FY81 State Grant is partially finished, with completion due 3/1/80. 4. A work-study person is currently conducting an on -board survey to determine ridership patterns, but no data is available yet. However, overall ridership (off-peak & peak) is up 15-20%. Expenditures Budget Year -to -Date % 6000 591,085 292,112 49.4 7000 7,470 20,030 268.1 8000 367,510 162,631 44.3 9000 2,785 1,096 39.4 13,242 0 0.0 Total 982,092 475,869 48.5 MICRO... BY JORM MICR(�LAB CEDAR RAPIDS • DES MOnIES M n MANAGEMENT BY OBJECTIVES DEPARTMENT: PUBLIC WORKS QUARTER: SECOND FY80 DECISION UNIT: POLLUTION CONTROL FISCAL YEAR OBJECTIVES: 1. Provide input in the planning and design of the new treatment plant. 2. Clean 15 miles of sanitary sewers with reoccurring problems by June 20, 1981. 3. Continue to expand our televising program to include new subdivisions as well as existing problem areas. WORK COMPLETED: 1. Veenstra and Kimm have completed Facilities Plan for proposed new plant. 2. Cleaned 27,700 feet of sewers. 3. Televised 2,300 feet of sanitary sewers in a new subdivision. ANALYSIS: We believe all of our programs are progressing satisfactorily. We are staying well within our budget. The sewer maintenance crew has been exceptionally busy performing small to medium sized repairs to sewers. Expenditures Budget Year -to -Date % 6000 290,140 135,127 46 7000 64,855 16,227 25 8000 164,132 63,191 38 9000 16,667 12,429 75 Total 535,794 226,974 42 61� MICROFILMED BY JORM MICR+LAB r CEDAR RAPIDS • DES MOINES I.v S 111 T W TH F 2 3 4 5 8AM-Magistrates Court (Chambers) LOAM -Staff Meeting 6 8AM-Magistrates 7 1:30PM-Informal 4:30PM-Resources (Conf Room) Court(Chambers) Council Conservation Comm 12noon-CCN (Rec Ct 9F+M-Joint RCC,HACAP 7:30P Informal (Conf Room) 3Co30PM�Conf1Room) Mayors Youth Mt (Conf Room) g P&Z (Conf Room) 7:30PM-Council 3:30PM-Senior Ctr (Chambers) Comm (Conf Room) PURIM 7:30PM-Formal P&Z (Chambers) 10 11 12 13 14 15 8AM-Magistrates LOAM -Staff Meeting 8AM-Magistrates �.. Court (Chambers) (Conf Room) Court (chambers) • - 1:30PM-InformalBAM-Housing 7(ChammbbC eals Appom) Board (Conf Rohaouncil Council (Conf Rm) (Cers) 7.30PM-Parks & Re • Comm (Rec Center)p 16 . 17 18 19 20 21 22 SAM -Mag strat(Chambers) CourtTelecommunica 4:30PM-Broadband MM 1(ConftRoom)eeting 8AM-Magistrates ion Court (Chambers) 9AM-Human Rts 1:30PM-Informal Comm (Conf Room) IPM -M gA' tr tes Cour 7:30PM-Formal P&Z Comm Training Council (Conf Rm) 7:30PM-Council `ham�ers) (Chambers) Session 7:30PM-Informal (Chambers) 7:30PM-Riverfront 7:30PM-Airport (Chambers) P&Z (Conf Room) Comm (Conf Room) Comm (Conf Room) 7:30PM-Human Right —_� Comm (Eng Conf Rm 4 25 26 27 28 29 8Cc Magistrates Court Chambers) 4:30PM-Resources LOAM -Staff Meeting (Conf Room) SAM -M •30PM-Informal Conservation Commer (Conf Room) 1Courtg�Chambers) Courtg�L�hrambess) Council (Conf Rm) 7:30PM-Council 4PM-Library Board (Lib Auditorium) (Chambers) 30 31 8AM-Magistrates Court (Chambers) 1:30PM-Informal Council (Conf Rm) MICROFILMED BY DORM MICR+LAB CEDAR RAPIDS • DES MOINES M i 1 ip r C' IOWA CITY ASSOCIATION OF PROFESSIONAL FIRE FIGHTERS Nathan B. Hopkins LOCAL 810 President, Local 610 108 Don Aire Iowa CityIowa 52240 i March 2, g80 Iowa City City Council Civic Center 410 E. Hashington Street Iowa City, Iowa 52240 Dear Council Members; r I am writing to object to'the laying off of Fire Fighters and other members of the Iowa City Fire Department. Allow me to make a few Pertinent observations showing what will happen if layoffs take place on the Fire Department. 1) Iowa City will receive a less desirable insurance rating from 2 The First rance Services o First ResponderProgram will cease to exist. 3j Relations between the Fire Department and the community will deteriorate. 4) Relations between the City and it's residents will deteriorate. 5) Relations between the Fire Fighters and the City Administration will deteriorate, + 6) Morale within the Fire Department will 7) The amount of actual fire fighting wordeteriorate. k, will decrease or take more time. 8) The amount of salvage work will decrease or take more time. 9) The amount of overhaul work will decrease or take more time. 10) The quality and quantity Of work at emergency scenes will deteriorate. 11) Present day fire inspections will lapse or schedule. fall behind 12) Proposed inspections will fail to be effective, efficient, or meaningful. 13) Ijnury rate will increase for Fire Fighters. 14) Training will cease to exist or will stagnate. 16; Record Difficultiesnwilllbewilnexpelrienceeet duinehiringdnew ird spersonnel for the Fire Department in the future. MICROFILMED BY JORM MICR+LA6 CEDAR RAPIDS • DES MOINES ■ I Page 2 Let me take this opportunity to elaborate on the points mentioned. 1) 101 -IA CITY WILL RECEIVE A LESS DESIRABLE INSURANCE RATING FROM INSURANCE SERVICES OF IOWA. In the February 1975 Insurance Services of Iowa rating report (copy inclosed) the following observations were made. a. The grading schedule requires five engines and two aerial ladder companies be utilized in a city the size of Iowa City. b. At the time of the rating report Iowa City had three engine companies and one aerial ladder company. c. This is•the same number of engine and aerial ladder canpanies utilized now. d. The rating report recommended that at least four fire fighters including an officer be on duty at all times with each engine and aerial ladder company. The rating report further states that six fire fighters including an officer on each engine and aerial ladder company at all times is standard manning. At this time the following manning exists for companies ready to respond to alarms Southeast Station one engine 3 fire fighters including an officer Westside Station one engine 3 fire fighters including an officer Central Station one engine 3 to 5 fire fighters including an officer one aerial ladder 2 to 3 fire fighters including an officer one mini pumper 1 to 2 fire fighters Reducing the present level of fire fighters on the fire department will place the fire department in a worse position on the rating report than it was in 1975 2) THE FiRST RESPONDER PROGRAM WILL CEASE TO EXIST. The first responder program which was instituted in September 1979 was designed to provide the citizens with a life saving medical program which utilized fire fighters. The program provided training for fire fighters in emergency care for trauma cases as well as heart attack and respiratory patients. Fire fighters received instruction through the Johnson County Ambulance Service in the field of Crash injury Management which is a life saving course recognized by the Department of Transportation. Training was given in Cardio Pulmonary Resuscitation for fire fighters not already certified by the American Heart Association in C1,I1. The fire department because of the location of its three fire stations was able to arrive at the scene of vehicle accidents heart attacks and respiratory emergencies in advance of Johnson County Ambulance Service. in a life threatening situation seconds and minutes count. MICROrILMED BY JORM MICR(�LAB CEDAR RAPIDS • OES MDINES s� y N i { l; I I i P I Page 2 Let me take this opportunity to elaborate on the points mentioned. 1) 101 -IA CITY WILL RECEIVE A LESS DESIRABLE INSURANCE RATING FROM INSURANCE SERVICES OF IOWA. In the February 1975 Insurance Services of Iowa rating report (copy inclosed) the following observations were made. a. The grading schedule requires five engines and two aerial ladder companies be utilized in a city the size of Iowa City. b. At the time of the rating report Iowa City had three engine companies and one aerial ladder company. c. This is•the same number of engine and aerial ladder canpanies utilized now. d. The rating report recommended that at least four fire fighters including an officer be on duty at all times with each engine and aerial ladder company. The rating report further states that six fire fighters including an officer on each engine and aerial ladder company at all times is standard manning. At this time the following manning exists for companies ready to respond to alarms Southeast Station one engine 3 fire fighters including an officer Westside Station one engine 3 fire fighters including an officer Central Station one engine 3 to 5 fire fighters including an officer one aerial ladder 2 to 3 fire fighters including an officer one mini pumper 1 to 2 fire fighters Reducing the present level of fire fighters on the fire department will place the fire department in a worse position on the rating report than it was in 1975 2) THE FiRST RESPONDER PROGRAM WILL CEASE TO EXIST. The first responder program which was instituted in September 1979 was designed to provide the citizens with a life saving medical program which utilized fire fighters. The program provided training for fire fighters in emergency care for trauma cases as well as heart attack and respiratory patients. Fire fighters received instruction through the Johnson County Ambulance Service in the field of Crash injury Management which is a life saving course recognized by the Department of Transportation. Training was given in Cardio Pulmonary Resuscitation for fire fighters not already certified by the American Heart Association in C1,I1. The fire department because of the location of its three fire stations was able to arrive at the scene of vehicle accidents heart attacks and respiratory emergencies in advance of Johnson County Ambulance Service. in a life threatening situation seconds and minutes count. MICROrILMED BY JORM MICR(�LAB CEDAR RAPIDS • OES MDINES s� y N t Page 3 Interest for this program was expressed by doctors from the University of Iowa Hospital and they were instrumental in getting the program started. The loss of this program will without a doubt lead to an increase in the mortality rate of persons in vehicle accidents, experiencing heart attacks and respiratory problems in Iowa City. There are many letters from the people who have come in contact with members of the fire department in their role as first responders. Needless to say these letters are complementary, i would suggest you peruse these letters. Loss of personnel on the fire department will result in the j curtailment. of the first responder program. it would appear that the loss of one-fire"fighter per shift and the addition of the new inspection program will place to great a strain on manpower. It seems ironic that because fire fighters must f perform inspections some one must lose their life. You should keep in mind that the life the fire department may save with the first responder program may be your own, f 3) RELATIONS BETWEEN THE FIRE DEPARTMENT AND THE COiMUNiTY WILL i DETERIORATE. Due to the fact that the fire department will no longer be able to provide the same level of professional service the the community the citizens will no doubt become upset with the fire department. At this time the fire department has good rapport with the members of the community. Sadly this will no longer be the case. I 4) RELATIONS BETWEEN THE CiTY AND IT'S RESIDENTS WILL DETERIORATE. As in N3 above the lack of a level of service by the fire department which is expeced by the citizen will lead to unhappiness on the part of the citizen. The well informed citizen will know right where to lay the blame, on the councils doorstep. 5) RELATIONS BETWEEN THE FIRE FIGHTERS AND THE CiTY ADMINISTRATION Ii WILL DETERIORATE. As you are no doubt well aware the relationship between the fire fighters union which negotiates for 45 members of the fire department, and the city administration is strained at this time. The distrust of the city administration by the ` fire fighters has developed slowly over the last several years. Recent contract negotiations with the city and the actions of both the city administration and the city council have made the situation worse. While it is apparant that the council is not in the least bit interested in maintaining a good working relationship with the workers of the city you must realize that you are directly responsible for the results of your actions. I S/y MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES F; Page 4 j G) MORALE WiTHIN THE FIRE DEPARTMENT WILL DETERIORATE. Morale could be called an intangible factor. Morale does however play an important roll in the fire service. Fire fighters are fire fighters because they enjoy the work. They enjoy the camaraderia. They enjoy helping people who are in need of help. This is an emotional factor to the job of fire fighting that city administrators have used against fire fighters ever since there were fire fighters and city administrators. There is such a thing as playing a good thing to long. if you think that there is anyone on the Iowa City Fire Department who is here because of the great piy you are sadly mistaken. The main reason that fire fighters are working here is because they like fighting fires and because until now a career as a fire fighter in Iowa City offered job security. I 7) THE AMOUNT OF ACTUAL FIRE FIGHTING WORK WILL DECREASE OR TAKE MORE TIME. Time is of prime importance in fire fighting. The sooner the alarm is given and the sooner extinguishment begins the better the chance of minimizing fire damage. In the past due to shortage of personnel for fire fighting the department fought fires with large hose lines putting out large amounts of water. They generally fought fires from outside the buildings and tried to drown the fire with large quantities of water. At the present time we attack the fire from inside the structure with small hose lines using small quantities of water. The reason we are able to do this is that we have enough fire fighters at the fire scene for the initial attack on the fire to get inside. I By getting inside the structure and applying water directly to the burning material or to the heated atmosphere we are able to minimize the amount of water damage and fire damage. If we are forced to resort to the old school of fire fighting due to a lack of sufficient numbers of fire fighters we -will see an increase in fire damage. A lack of sufficient numbers of fire fighters at the fire scene will lead to a delay in fire attack which will also i result in an increase in fire damage. MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES 6 Page 5 R) THE AMOUNT OF SALVAGE WORK WILL DECRFASE OR TAKE MORE TIIIE. At the present time our salvage efforts are hampered by not enough fire fighters. If there is a delay in begining salvage operations there will be an increase in property damage. At present our salvage operations are able to commence following initial fire attack because vie have sufficient personnel to begin salvage once lines are in position to attack the fire. With a reduction of fire fighters there will be a delay in the fire attack which will delay the start of salvage operations. In an ideal situation salvage operations should commence at the same time as water is being applied to the fire. We are unable to do this at this time. There will be no way we will be able to provide any form of adequate salvage operations with reduced numbers of fire fighters at the fire scene. This will of course cost the taxpayer more or his/her insurance company more if he/she has an adequate amount of insurance. In the final analysis it will cost all of us more. 9) TIIE AMOUNT OF OVERHAUL WORK WiLL DECREASE OR TAKE MORE TiME. Overhaul is basically the search for any hidden fire, the source of the fire and the clean up following the fire. As fire fighting is quite strenuous it is quite easy to become exhausted just fighting a fire. The really hard work of fire fighting is the overhaul phase. If fire fighters are exhausted by the time they get around to overhaul they overhaul effort will not be a thorough as it is now. The causes of some fires will not he determined and clean up will not he very thorough. 1110 clean up feature of overhaul is fairly unique on the Iowa City Fire Department. flare in Iowa City the debris following a fire is removed from the structure by the fire fighters saving the owner a lot of hard work. Fire fighters cover up holes in roofs, broken windows and doors. This is a g0sture which is appreciated by the public. There are not many departments which do this anymore. Loss of this type of service will be a loss to the citizen. But with a loss of personnel on the fire department we just vion'L be able provide the little extras that the citizens appreciate. MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES spy 8 a a jli-ize 6 10) THE QUALITY AND QUANTITY OF WORY. AT EMERGENCY SCENES WILL DETERIORATE. i sib MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES With the loss of training the quality of work. will naturally deteriorate. If you are unfamiliar with a task you cannot perform the task as well as someone who is well trained. The quantity of work will deteriorate because a person can only perform so much work. The loss of personnel on the fire department will have a marked effect on the aniount of work performed. 11) PRESEN-1 DAY FIRE INSPECTIONS WILL LAPSE OR FALL BEHIND SCHEDULE.. With a reduction in personnel as state in #10 above only a certain amount of work can be performed by the personnel available to perform it. It will no doubt depend upon which of the inspection programs takes precedence. if the present inspection program takes precedent it will probably be able to limp along. If the new program takes precedent it can probably limp along. There is just no possible way to reduce personnel and increase f work load and expect anything to be a success or to even be viable. 12) PROPOSED INSPECTIONS WiLL FAIL TO BE EFFECTIVE, EFFICIENT, OR MEANINGFUL. As stated in #11 above the success of this venture is doubtful. In addition the fire Fighters have a feeling that the goal of the city administration and city council is to make the inspections virtually meaningless. A paper work project if you will. 's 13) INJURY RATE WILL INCREASE FOR FIRE fI11,IITERS. v, It Stands to reason that if you expe.(.L a fire fighter to do more work at the fire scene to mals up for laid off fire fighters there will be an increase in injuries. They will probably take s the form of strains and sprains particularly back injuries and ¢ in warmer weather heat prostration, and heat stroke. These injuries will compound the personnel shortage leading to more injuries. Pension costs for disability pensions for injured fire fighters will probably rise. Lost time due to fire fighters P an sick leave will rise. u a 9 i sib MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES f ^age 7 14) TRAINING, WiLL CEASE TO EXIST OR WILL STAGNATE. 1 -11th the loss of the Training Officer there will be no coordinated training program. With the assignment of additional duties to an understaffed fire department there will probably be little time available for training anyway. While gossip Speculates that the Fire Marshal will become the Fire i•larshal/Training Officer disbeleif grows. The Fire Marshal will be hard Pressed to keep his head above water handling or trying to salvage the inspection program that he will have little time to devote to training. Besides who will Ile train? Everyone will he out trying to keep their heads above the water on inspections. With the loss of training comes slipshod amateurish fire fighting operations. The department will not be able to keep up with changes and advances in fire fighting technology, and procedures. 15) RECORD KEEPING, WILL NOT MEET REQUIRED STANDARDS. Several years ago the fire departments record keeping was virtually non existent. Today due to the fire departments own secretary we have a very good system. While you may imagine that the fire department would be one of the last places where record keeping and paper work exists we can tell you that it just ain't so. There is an adequate amount of record keeping and paperwork to keep a secretary employed full time. Decentralization of records (Police secretaries keeping the fire department records) will probably lead to lost or misplaced records, confusion on record retrieval, etc. Having persons who are not familiar with the fire department records maintaining the records will lead to confusion and mistakes. Having secretaries in another department keep the records will lead to another problem which come readily to mind. The secretary owes an allegiance to the department for which he/she works. Tile secretary owes no allegiance to the outside department and naturally the other departments records and materials will be taken care of after the parent departmonts. MICROFILMED BY JORM MICR0LA9 CEDAR RAPIDS • DES MOINES spy M Page B 1 10) DIFFICULTIES WILL DE EXPERIENCED iN IIiRINr, NEW PERSOiRIEL FOR 111E FIRE DEPARTMENT IN 711E FUTURE. As stated in d16 on Page 4 there is no one working at the fire department who is here for the big salary. Some of the personnel who are hired have had previous experience in fire fighting and enjoy fire fighting. Others have no experience in fire fighting. The one thing that they have in common in job security as a fire fighter. There is also a pension which several years ago was quite good but as a result of inflation is miniscule now. i The key words here are job security. There used'to be job security as a fire fighter. No longer. What will your best selling point be now that you have thrown job security out the window? In sunmlary I must question whether you have been presented with all of the facts to make a decision of this magnitude? Have you weighed the facts? Have you considered the cogsequences of your actions on the connnun i ty? I would like to think that you are being misled by the city administrations. 1 hope that if that is the case you will do one thing before you take a final vote on laying off fire fighters. I would like you to go out into the streets of Iowa City and ask the citizens what they want you to do. Ask your neighbors, ask the people you work with or the people who work for you. The citizen is the person who put you in office give him a little consideration. It's his life and property you are talking about sacrificing. Give a little thought to the fire fighter who will be out of a ,job. Sure, the fire fighter can find employment elsewhere. But really why should he. That fire fighter that you are laying off has put his physical well being and his life on the line for you and for the citizens of this conmunity inumerable times. Show this person a little consideration. Don't give him the back. of your hand -as you have done so many times in the. past. If you can not do any of the things mentioned at least do one thing. Do it for me, do it for your neighbors, do it for your family, do it for yourself. THINK ABOUT IT! Thank you for the opportunity to address you on this most important issue. 4nx-" NatNat 11 President, Local 610 r MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES spy cc: Meal Berlin Robert Keating Patricia Brown SON__._.. ____ .,I __ __ MICROFILMED BY JORM MICR+LA9 's P CEDAR RAPIDS • DES MOINES •• u:. i I J. 1 1 VII 1 cc: Meal Berlin Robert Keating Patricia Brown SON__._.. ____ .,I __ __ MICROFILMED BY JORM MICR+LA9 's P CEDAR RAPIDS • DES MOINES •• u:. I ' w r IOWA CRY OFFICE: L 3182 361 -BIRO KALONA OFFICE: L 315 7 SSS -2015 EE OFFICE: 1318 3 628-5400 HONOHAN, EPLEY, LYON & KRE3N LONE HILLS OFFICE: [3157 678.226! ATTORNEYS AT LAW JAY H. HONOHAN LI L EPLEY T. 330 EAST COURT STREET T. E.IOWA CITY THEODORE L.KgON > IOWA 62240 GARY L. HAYMONO March 4, 1980 Honorable Mayor and City Council of Iowa City Civic Center Iowa City, Iowa 52240 re: Budget and Police Cuts Dear Mayor and Council: I apologize that I cannot attend the Council meeting to present this matter. I have another meeting that was scheduled before I became aware of the proposed cut in the Police Depattment. As you recall, I appeared before you at one of your informal meetings on behalf of the Chamber of Commerce urging you not to cut officers in the Police Department. On behalf of the Chamber, I would like to strongly urge you not to make any cuts in the Police strength. City Budgets are always difficult but I urge the Council to consider: I. Budgets are a matter of priorities and the Council determines what the priorities are. 2. Across the board cuts, as are being proposed, do not reflect the needs of the community. 3. The Chamber believes, and we would hone that the City Council would agree, that police protection of the City is one of our most im— portant priorities. 4. If the Police Department is to be effective in protecting the citizens of this City, it should be adequately staffed -- and I have heard no one argue that the Police Department will be adequate after the cuts. From reading the paper you appear to have the ability to delay the cut in the Police Department at this time. I urge you to delay this proposal. I further urge you (not as a Chamber member but as a citizen) to appoint MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES �o�� MAR 419E79 ABBIE STOLFUS CITY CLERK M page two a committee that you feel qualified to study the overall budget problem to provide suggestions for next year. We also recognize the problems this creates for all of you and would like to say the Committee recognizes this is a thankless task for the If Council. Very truly yours, /HQNOHAN, EPLEY,JYON 6 KRON. . HONOHAN, EPLEY, LYON & KRON ATTORNEYS AT LAW JAY H. HONOHAN LLOYD A. EPLEY L E. LYON THEODORE LARON I GARY L HAYMpNO IOWA CRY OFFICE: r 3191 361-BIOD KALOHA OFFICE: C3183 619.2916 LONE TREE OFFICE: [3191 929-94Do HILLS OFFICE: 13193 979.2267 330 EAST COURT STREET IOWA CRY, IOWA 62240 ?larch 6, 1980 Honorable Mayor and City Council of Iowa City Civic Center Iowa City, Iowa 52240 RE: Fire Department Personnel Cuts Dear Mayor and Council: �'' MAR 6 1980 0 ABBIE STOLFUS CITY CLERK I apologize for being late with this letter. On behalf of the Chamber of Commerce I wish to speak against the proposed cuts in the Fire Department personnel. The Chamber views this problem in much the same way that we look at the proposed cuts in the Police Department. We feel it is a matter of priorities and the Fire Department is a high priority item. As I have stated earilier across the board cuts like proposed do not reflect needs of the community. In the area of Fire Protection one cannot with certainty state that Iowa City needs x personnel to do the best job but I do believe that one can say that the City Fire Department is not overstaffed so therefore personnel reductions should not be made. The Chamber feels strongly that the majority of the citizens would support the proposition that the Fire Department is of such a high priority that it should not undergo personnel reductions at this time. The Chamber urges the Council in its deliberations to decide not to reduce the personnel in the Fire Department. Very truly yours, HONOHAN, EPLEY, LYON & KRON /Y: / �//onohan JHH/dp MICROFILMED DY JORM MIC RA LA8 CEDAR RAPIDS • DES MDINES L i I I I 1 i IOWA CRY OFFICE: r 3191 361-BIOD KALOHA OFFICE: C3183 619.2916 LONE TREE OFFICE: [3191 929-94Do HILLS OFFICE: 13193 979.2267 330 EAST COURT STREET IOWA CRY, IOWA 62240 ?larch 6, 1980 Honorable Mayor and City Council of Iowa City Civic Center Iowa City, Iowa 52240 RE: Fire Department Personnel Cuts Dear Mayor and Council: �'' MAR 6 1980 0 ABBIE STOLFUS CITY CLERK I apologize for being late with this letter. On behalf of the Chamber of Commerce I wish to speak against the proposed cuts in the Fire Department personnel. The Chamber views this problem in much the same way that we look at the proposed cuts in the Police Department. We feel it is a matter of priorities and the Fire Department is a high priority item. As I have stated earilier across the board cuts like proposed do not reflect needs of the community. In the area of Fire Protection one cannot with certainty state that Iowa City needs x personnel to do the best job but I do believe that one can say that the City Fire Department is not overstaffed so therefore personnel reductions should not be made. The Chamber feels strongly that the majority of the citizens would support the proposition that the Fire Department is of such a high priority that it should not undergo personnel reductions at this time. The Chamber urges the Council in its deliberations to decide not to reduce the personnel in the Fire Department. Very truly yours, HONOHAN, EPLEY, LYON & KRON /Y: / �//onohan JHH/dp MICROFILMED DY JORM MIC RA LA8 CEDAR RAPIDS • DES MDINES L ■ I i 1MSWPP1N6VXjffKR MERCHANTS ASSOCIATION March 6, 1930 RECEIVED ":;; % 1980 President, Mail Merchants Assn. The Mall Shopping Center Iowa City, Iowa .'iFj....'"R 71980 ABBIE STOLFUS CITY CLERK SUITE A MALL SHOPPING CENTER IOWA CITY, IOWA 52240 MICIIIILMED DY JORM MICR�LAO CEDAR RAPIDS • DES MDINES Mayor John nalmer, ilk p' Members of City Council City of Iowa City �. i)�j�xxp� �In1�9 Dear Mayor Balmer and Council, The 51 members of The Mall merchants Association of The Mall Shopping Center of Iowa City strongly urge you to reconsider planned reductions in strength of police and firemen force of our city. �M-••- Adequate protection of lives andproperty for Iowa City residents depends on having adequate numbers of policemen and firemen to cover the needs. The present levels are barely adequate and further reductions of staff will result in a dangerous lack of protection for Iowa Citians. We cannot give you any specific suggestions to your budget except to hope that secretarial and clerical needs can be combined or stretched to allow funding for a full police and fire force personnel. President, Mail Merchants Assn. The Mall Shopping Center Iowa City, Iowa .'iFj....'"R 71980 ABBIE STOLFUS CITY CLERK SUITE A MALL SHOPPING CENTER IOWA CITY, IOWA 52240 MICIIIILMED DY JORM MICR�LAO CEDAR RAPIDS • DES MDINES a �6 City of Iowa c^y MEMORANDUM Date: March 6 1980 To: Rosemary Vitosh anal Neal Berlin 1 f From; Melvin Jones Re: Budget Procedures I talked with the State Budget Director about a couple of concerns this 'I morning, 1, What would happen if there was not a majority of the Council in favor, .5 of the budget or, if the Council became deadlocked? .;.•1 Answer: The Appeals Board would, at the request of one of the Councilmembers, step in and decide the levy for FY81, based on •,, previous budget discussions, discussions with Council, and public hearing. The Appeals Board would not intervene if a majority) of the Council did not favor the budget as the Board would assume j; that the City would hold another public hearing in an effort to get e ' ; majority Council vote. Therefore, only if the Council isdeadlocked .,P - and and only if a Councilmember requested intervening will the Appeals Board step in. 2. Can the Council levy more than what was published in the newspaper? Answer: The only way the Council can increase the levy 'to set°1 another public hearing, publish the new proposal in the newspaper and hold another public hearing. Tasked.the State Budget Director whether there was some give on the March 17 deadline and he said that there was, especially since a number of municipalities have yet to receive their assessed valuation totals. ! bdw3/8 MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DCS MOINES s�7 STAFF REPORT To: Planning and Zoning Commission Prepared by: Doug Boothroy Item: 5-8001. McBride Addition, Part 3 Date: February 21, 1980 GENERAL INFORMATION Applicant: Lyle W. Miller 335 Kirkwood Avenue Iowa City, Iowa 52240 Requested action: Final plat approval Purpose: To subdivide 15 single-family lots Location: West of Keswick Drive and north of �1 West Benton Street Size: 5.8 acres I STAFF REPORT To: Planning and Zoning Commission Prepared by: Doug Boothroy Item: 5-8001. McBride Addition, Part 3 Date: February 21, 1980 GENERAL INFORMATION Applicant: Lyle W. Miller 335 Kirkwood Avenue Iowa City, Iowa 52240 Requested action: Final plat approval Purpose: To subdivide 15 single-family lots Location: West of Keswick Drive and north of West Benton Street Size: 5.8 acres Existing land use and zoning: Undeveloped and R1A Surrounding use and zoning: East - Single-family and RIB South - Willowcreek Park West - Undeveloped and RIB North - Single-family and RIB Comprehensive Plan: Area is designated for density of two to eight dwelling units per acre Applicable regulations: Provisions of the Subdivision and Stormwater Management Ordinances. 45 -day limitation period: 3/14/80 60 -day limitation period: 3/29/80 SPECIAL INFORMATION Public utilities: Adequate sewer and water services are available. ' Public services: Sanitation service is available as well as police and fire protection. Transportation: Vehicular access is from West Benton Street. Physical characteristics: The topography is gently to moderately sloping (2-9%). -._...--._---__. _ s MICROFILMED BY JORM MICR+LAB CEDAR RAPIDS • DES MOINES I 2 !1 ANALYSIS i The subject plat is in substantial compliance with the approved preliminary plat (see application 5-7919, approved September 1979). The staff finds no major constraints in the development of the property in question. Necessary improvements for the stormwater management basin, which serves both Parts 3 and 4, are proposed with this Addition. Also proposed is the dedication of the detention basin as an addition to Villa Park. The Parks and Recreation Commission, at the time of the preliminary plat approval, agreed to accepting this park addition subject to its improvement according to plans and .specifications approved by the City. RECOMMENDATIONS The staff recommends the final plat be deferred. Upon revision of the deficiencies and discrepancies noted below, the staff recommends that the final plat be approved. DEFICIENCIES AND DISCREPANCIES 1. The signatures of the utility company should be provided. 2. The legal papers are not in order and should be revised. 3. Additional easements should be provided in order to construct the sanitary sewer according to City of Iowa City standards along Leonard Circle. 4. A ten foot wide storm sewer easement should be provided along the south lot line of lot 84. 5. A mailing address for the owner and subdivider should be provided on the plat. ATTACHMENT Location map. ACCOMPANIMENT Final plat. Approved by: Program Development MICROFILMED BY DORM MICR¢LAE! CEDAR RAPIDS • DES MOINES 541 f I.. 114041 Cpen Letter to the Cows, City Council and the Press -Citizen Dear People: Our eight-year old non came along to City Council last night, The setting and theme were reminiscent of a meeting we attended, as a family, a year ago. That night we fought the Ruling Class's decision to terminate a very special school serving a very special human need. The ruler and his council were Superintendent David Cronin and the I.C.C.S.D. School Board. The school was Henry Sabin. The human need was loving, individualized instruction for very special children with very special needs, especially those with "learning dila- bilities" and those from minority and single parent families. We, the "subjects", sat limp -lipped as the emperorle council irreversibly "arrested" the heart of old Henry with the deft precision of the budget -cutting dagger. The point is, the Board voted to close Sabin, and TM put the issue 6 up for public discussion. We lost the battle but the deck was stacked. i j last night the Iowa City Council held a public hearing on proposed staff reductions. The most vocal protest favored maintenance of police and fire personnel at their ourrent levels. i As a member of the Iowa City Fire Department, I must draw a parallel with li the School Board's decision of a year altos the lose of another human need, that of emergency life support. As a firefighter I am proud to serve on a ?rofessional team whose highest priority in the protection of human life. The Iowa City Fire Department currently has on its payroll four Emergency Medical Technicians (E.M.T.'s). Besides the secretary and training officer, the budget out calls for the firing of three firefighters. Two of these three are u^.M.T.'s. A year ago our son directly witnessed the political process that closed his school. In that way the School Board gave him a real education. Last night he listened patently as the firefighters fought to save his dad's job. Let us hope that he was witness, this time, to a democratic council with the cour- age to respond to human needs with human solutions. MICROFILMED DY JORM MIC RLAB CEDAR RAPIDS • DES MOIRES Sincere regards, Richard C. 4r t Sharon Center - Me 11 MAR 61980 ABBIE STOLFL.; CITY CLERK 5�9 City of Iowa C' y MEMORANDUM Date: February 28, 1980 To: • City Council From: Rosemary Vitosh, Director of Finance -LJ Re: Reclassification of Parking Enforcement Attendant Position Recently, cashiers have been hired for the ramp on a temporary basis at $3.50 hourly. We anticipate these positions will become permanent full- time and at that time will be part of the AFSCME bargaining unit in range 1, $4.184 to $5.362 hourly. This is the same range where the Parking Enforcement Attendant position is currently placed. The cashier is in the ramp, collecting money from users as calculated by a computerized cash register and prepares or assists in preparing daily check out of the register. The Parking Enforcement Attendant must work in all kinds of weather, be knowledgeable of the laws and ordinances and enforce them. Parking Enforcement Attendants also appear in court as required. The number of contacts with irate citizens is directly related to enforcement authority. The Human Relations Department has completed a review of this position and has determined that the Parking Enforcement Attendant and Animal Control Officer job descriptions are relatively equal with the exception of requiring one year experience handling animals for the Animal Control Officer. Both Positions require knowledge and enforcement of ordinances and laws which are generally regarded as unpopular, irritating, etc. Neither position equates with sworn law enforcement positions. Animal Control Officers are in range 3 in the pay plan. The review process included examination of other criteria and comparability with other positions. The entire review process supported the need to reclassify the Parking Enforcement Attendant position from range 1 to range 3. The cost of reclassifying eight Parking Enforcement Attendants will be $2,022 for the balance of FY80. Sufficient funds are available in the FY80 budget to cover this amount. One position has been deleted in the FY81 budget. The cost of seven positions in FY81 is estimated at $5,260 due to the reclassification. Our recommendation is to implement the reclassification immediately. We recognize that disparity exists and the issue should be addressed. An alternative would be to approve the reclassification effective July 1, 1980. This alternative would avert the $2,022 cost for the balance of FY81. bj/sp 1 M MICROFILMED DY JORM MICR(�LAB CEDAR RAPIDS • DES MOINES 5/9