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HomeMy WebLinkAbout2008-12-01 Council minutes^~„®~ CITY OF 1O1NA CITY ~n~,~,~~~,~ ~~~~~ RAND (~ M M ~Ma .,.~..~ 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.