HomeMy WebLinkAbout2008-12-01 Council minutes^~„®~ CITY OF 1O1NA CITY
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DATE: December 9, 2008
TO: Mayor and City Council
FROM: Marian K. Kan, City Clerk
RE: City Council Meeting With Legislators, Council Work Session,
December 1, 2008, 5:30 PM in Emma Harvat Hall
COUNCIL: Bailey, Champion, Correia, Hayek, Wright, Wilburn (5:35 P.M.).
Absent: O'Donnell
STAFF: Karr, Dilkes, Helling, Lombardo
GUESTS: Senator Robert Dvorsky, Senator Joe Bolkcom, Representative Dave Jacoby,
Representative Vicki Lensing, Representative Mary Mascher.
Absent: Senator Hahn and Representative Kaufmann
Welcome and Introductions:
Mayor Regenia Bailey welcomed everyone and asked that they introduce themselves quickly to
make sure all of the microphones were working. Mayor Bailey also thanked the legislators
present for their work this past summer during the flood. She thanked them for checking in with
staff periodically, and with Council Members, to see how things are progressing.
Alternative Revenue Sources:
Mayor Bailey began the conversation about alternative revenue sources, stating that the Metro
Coalition, of which Iowa City is a part, has been discussing franchise fee increases. She added
that the discussions have centered on legalizing provisions up to 5%, a local income surtax, and
she referenced a paper by Peter Fischer that discusses this. Bailey also noted that they have been
discussing possible payment in lieu of taxes from tax-exempt organizations. She noted Senate
File 2400, which included an amendment to exempt non-profit organizations and governmental
entities from paying the hotel/motel tax, and she asked that the legislators consider getting rid of
this amendment. Representative Jacoby addressed this issue, saying there was apparently a
technical. glitch in the Department of Revenue concerning this, and that there have been several
areas of the state affected by this. Senator Bolkcom stated that one issue they need to look at is -
should governments tax other governments. He added that he believes this issue is worthy of
discussion. Senator Dvorsky stated that groups, such as the Metro Coalition and League of
Cities, needs to bring cities together more in agreement to give them one voice, especially with
issues such as local option taxes.
City Council Meeting with Area Legislators
December 1, 2008
Page 2
Economic Development Initiatives:
1. Micro Enterprise -Mayor Bailey spoke to the Council's desire to see an increase in
funding for micro-enterprise. She added that Iowa City typically uses CDBG funds from
their Economic Development pool and that some great businesses have been started with
these programs. Senator Bolkcom stated that they did create a new micro-enterprise
development program this year with $500,000. He added that they hope to hire some
expertise for this department, and want to focus mainly on those in the lowest 20% of the
income level in starting their own businesses. Senator Dvorsky added that this was part
of the recapped funding bill in the Senate. He added that the credit unions have formed a
foundation to raise a million dollars to add to this sort of program. He was not sure how
far along this project is, but stated that it sounded like it was moving along well and
would be an excellent program.
2. Expansion of Iowa Earned Income Tax Credit -Council Member Correia spoke to this
issue, stating that the Iowa Fiscal Partnership is recommending a credit of up to 30% of
the federal credit. She added that even going from 7 to 12% is going to help those who
most need it. Correia then spoke about the free tax preparation program that has taken
place in cooperation with the U of I's Tippie College of Business. She stated that 664
households in Johnson County were helped by this program last year. Senator Bolkcom
spoke briefly abut legislation that was passed last year that required DHS to put out more
information to people, such as in mailers.
3. More Effective Historic Preservation Tax Credit Programs -Mayor Bailey noted that
historic preservation tax credits are another tax credit program with great interest. She
noted that the requirements are fairly high for these programs. Council Member Hayek
noted that the State Historic Preservation tax credits are what helped the Englert Theater
make a comeback. He spoke briefly about the processes involved in going after both
state and federal credits.
4. Restore funding for Vision Iowa programs in FY10 and beyond -Mayor Bailey spoke
about the proposed Sand Lake project, noting that this is about 188 acres that the City is
working to turn into a city park. She noted that it would be good to see those dollars for
the Vision Iowa programs be reaffirmed for the upcoming years, especially in light of the
tightening budgets. The discussion turned to TIF programs, with Bailey stating that Iowa
City has done a very good job with their TIF's. Senator Bolkcom noted that some
communities could use a tightening up of the TIF policies though.
City Council Meeting with Area Legislators
December 1, 2008
Page 3
5. Funding support for Passenger Rail initiatives -Mayor Bailey next spoke about the
continued interest in passenger rail in the Iowa City area. She noted that the DOT is to
ask for some changes in code in order to give more flexibility for passenger rail. She
added that the possibility of having an Amtrak line from the Quad Cities to Iowa City is
still being discussed, with some hold up on the Illinois side. The CRANDIC rail line was
also talked about briefly, with Bailey noting the high interest for this. Representative
Jacoby noted that if there is a keen interest in a Cedar Rapids to Iowa City line, then more
research should be done on land acquisitions and right-of--ways.
Alcoholic Beverages:
City Attorney Dilkes spoke about the alcohol issues that Iowa City is currently working on. She
noted that in 2001 Iowa City passed a specials' ordinance prohibiting 2-for-1 and all you can
drink specials. Dilkes further explained the City's interest in this issue and having the state make
some changes in law to help facilitate the desired effects.
Letter to Governor re: IDED interpretation for CDBG funding:
Mayor Bailey noted that she would keep everyone abreast of developments in the flood recovery
process. She noted that there is a conference call coming up later this week where some issues
would be clarified, and that she would share this information with everyone. She then thanked
everyone for attending the meeting.