HomeMy WebLinkAbout2009-11-02 Public hearingrr
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NOTICE OF PUBLIC HEARING
Notice is hereby given that the City Council of
Iowa City will hold a public hearing on the 2nd day
of November, 2009, at 7:00 p.m. in Emma J.
Harvat Hall, City Hall, 410 E. Washington Street,
Iowa City, Iowa, or if said meeting is cancelled, at
the next meeting of the City Council thereafter as
posted by the City Clerk; at which hearing the
Council will consider a resolution authorizing the
conveyance of the vacated portion of Court Street
west of Madison Street, and Front Street south of
Burlington Street to the University of Iowa.
Copies of the proposed resolution are on file for
public examination in the office of the City Clerk,
City Hall, Iowa City, Iowa. Persons wishing to
make their views known for Council consideration
are encouraged to appear at the above-
mentioned time and place.
MARIAN K. KARR, CITY CLERK
~~
NOTICE OF PUBLIC HEARING
Notice is hereby given that the City Council of
Iowa City will hold a public hearing on the 2nd day
of November, 2009, at 7:00 p.m. in Emma J.
Harvat Hall, City Hall, 410 E. Washington Street,
Iowa City, Iowa, or if said meeting is cancelled, at
the next meeting of the City Council thereafter as
posted by the City Clerk; at which hearing the
Council will consider an ordinance amending Title
3, Finances, Taxation and Fees, Chapter 4,
Schedule of Fees, Rates, Charges, Bonds, Fines,
and Penalties, Section 8, Parking Violations, to
add a $50 penalty for snow emergency parking
violations.
Copies of the proposed ordinance are on file for
public examination in the office of the City Clerk,
City Hall, Iowa City, Iowa. Persons wishing to
make their views known for Council consideration
are encouraged to appear at the above-
mentioned time and place.
MARIAN K. KARR, CITY CLERK
:.~ ~ ,
NOTICE OF PUBLIC HEARING
Notice is hereby given that the City Council of
Iowa City will hold a public hearing on the 2nd day
of November, 2009, at 7:00 p.m. in Emma J.
Harvat Hall, City Hall, 410 E. Washington Street,
Iowa City, Iowa, or if said meeting is cancelled, at
the next meeting of the City Council thereafter as
posted by the City Clerk; at which hearing the
Council will consider an ordinance amending Title
12, entitled "Franchises", of the City Code to add
a chapter imposing a franchise fee on the gross
revenue of franchisee MidAmerican Energy
Company derived from the distribution and retail
sale of electricity and the distribution, delivery
and retail sale of natural gas by MidAmerican, or
other natural gas providers utilizing the
distribution system of MidAmerican, to
customers within the current or future corporate
limits of the City of Iowa City, and on a Revenue
Purpose Statement specifying the purpose or
purposes for which the revenue collected from
the franchise fee will be expended.
REVENUE PURPOSE STATEMENT: The
revenue collected from the franchise fee will be
expended for any of the following purposes:
1. Inspecting, supervising and otherwise
regulating the MidAmerican Energy Company gas
and electric franchises.
2. Public safety, including the equipping of fire,
police and emergency services.
3. Public infrastructure to support commercial
and industrial economic development.
Copies of the proposed ordinance which
includes the Revenue Purpose Statement is on
file for public examination in the office of the City
Clerk, City Hall, Iowa City, Iowa. Persons wishing
to make their views known for Council
consideration are encouraged to appear at the
above-mentioned time and place.
MARIAN K. KARR, CITY CLERK
City of Iowa City
M EMORAN DU M
To: Dale Helling, Interim City Manager /~
From: Rick Fosse, Public Works Director (~
r
Date: October 26, 2009
RE: Right-of-Way Management Expenses
~- ,
~~
i
Outlined below are the estimated annual right-of-way management expenses that are
attributable to MidAmerican Energy's occupation of the public right-of-way for the sale of
gas and electricity.
Public Works Staff Time and Equipment $63,000
This item represents staff time and equipment necessary for the Public Works
Department to locate underground city utilities in the ROW in advance of excavations by
MidAmerican, track and permit work performed by MidAmerican, inspect sites for proper
traffic control and barriers necessary for public safety, inspect backfill and pavement
repairs, respond to questions and complaints from the public and coordinate the
relocation of MidAmerican facilities necessary to accommodate capital projects.
Pavement Degradation $100,000
This item represents the long term expense of MidAmerican's utility cuts on the City's
pavements. Even with quality backfill and pavement repairs, the long term durability of
pavement is degraded by utility cuts and subsequent pavement restoration. This
manifests itself in the form of dips, pavement cracks, and potholes that require ongoing
maintenance. Ultimately, the pavement life is reduced, requiring large scale capital
projects on a more frequent basis.
Cost to underground electrical facilities $175,000
This item represents the average annual expanse to convert overhead electrical systems
to underground systems, most often in conjunction with capital projects. MidAmerican is
only obligated to relocate their facilities that conflict with capital projects, however they
have no obligation to convert electrical systems from overhead to underground. This
becomes a public expense. Recent examples include Lower West Branch Road and a
portion of North Dodge Street. Upcoming examples include Lower Muscatine Road and
Dubuque Street.
Forestry Staff Time and Equipment $ 5,000
This item represents the staff time and equipment for the Forestry Division of the Parks
Department to respond to issues related to conflicts with MidAmerican's facilities and
street trees. This includes aerial and subsurface conflicts.
Total $ 343,000
Note that all of these expenses will vary from year to year. This memo represents our
best estimate of the average annual expense.
Cc: Kevin O'Malley
Ron Knoche
I~elene R. Hembreiker
3002 Parkview venue
Towa City, Iowa 52240
October 21, 2009
TJear t~iayor Bailey and City Council Members:
I oppose the rranchise r,ee being proposed for Iowa City by the
Iowa City cour_cil.
T am enclosing; an editorial by Bob Elliott that appeared in the
Press-Citizen a f.ew days ago. Bob lists many reasons that the i`~ranchise
~'ee is a bad idea. I have underlined these in red.
~.~Je are already paying an additional new tax with the Local Option
Tax, bringing our state and local taxes to 7~.
Please don't burden us with another tax at this time.
Respectfully,
,:.~
__ '~
:.;~ ~~
.<.3
Opinion
Page~A~A
Friday, Octok:e~ 36, ~Dtl9
Iavva Pity PCe'ss-Citl~xn
Jeff Charm-Carlson, Opinion for
Phone; 887-5435
E-mail.. opinian@press-citizen.com
2% franchise fee is wrong
~t~ ~ ~x~tY:ent lr<utchi.
fee being pmrx)sr=<i for Iowa.
City by our cite' council i5 x>
wrong in x) m:uty ts~lys.
r;t-~~n tlu~ nuitt~ is a tni~-
rFOmeI'. It ttt<ty stlunti ttlterf~~t-
ing, belt Yofk_~~+; t;tt~ r<~adtiri;;
munf?}~ to it,_; scxtrct ~ antl ~ ou'll
frntl tt s jrt,5t utc)t.tli t T 4~ nias-
..
cluerar~ing ~~ a ter. ~s <t.
ta/c1Tee, it`s tnotz~ ttttttur t}t<ut a
~e~ tax, .~xl ~~~ot~° y-et, it
inhibits the <•ity's E>,•t,nornic
dcvelopmellt t'fTUtt:S.
At IP.:IS`t a Sales tart
exr~rnlits 5t~ch nt4 t45tUcis as
~r+x•Pri~~. '11te fr~aitchi.~; if~c~
re~a~tscs tht~.t c~otu <~~tt and
tdXe•`+ only' tlx• ncK~t";it,V o#'
heatartg in •,~uttcr vxl c~fx~ling.
in ~trnm}cr 1?ttrtltE t. it. wart,
_ ....
~r:~(~ conunert~ial tr..~ittstti<tl
~Il1LS Ile(itjIIlr; f'4tU1St.'P ('rtPl'
~b hl'Cd.tltt• Li it 11 ~it'ge
ga'rele~t°ttr fxtw~.:~ i tills; wotdd
;ut<ttnt:tiu~ll:~; ittrt~:esc°. Iic~-p
ut i~litrd ul,tunerc,tal~-~r~ctpes~-
ti s alrr ,t?~; pav ~troperty
t<sxes ~~ mare tltzstt twice dle
raze of rc~~de~t~ial tarorcy
f~uner~.
'f tuzs, while l~f~~ c f `ity lro-
~~iclt~s s~ignic<tttt iirkaltZg to
BOb
E~~tO'~
bYr!tets`
Group
suI?lort t.,,, Io~,v~a City ~r#'<s
L~ec~lopmettt C~r'aup arttl
~vltile e•ity staff {)romote eco-
nonuc cie~ t~iopt~tf~rtt, ute fran-
chise feelt:~.~ wirl I~ an obvi-
ous c+tnttexpoint to titc,se
effort.
And ~~ho ~-out~~ pas' t1te~
tntttxlse<i 3t:;.t. hisc• ffv::!t<t ~:'.`
T1)e tutti~tie t z5 trv+~i;,,nnP whn
reltes on ~~Ls 2nil t'!(c•tr~<
pt ewer foe h«.ding std crn>i-
irir;. Fnt.t ksu »', pc~ol)Ie like
t cx t <urci nle.
4ttttport, *~ P`)irit c~iat_at
the ft:snf°1~:., iiti,~tt~,i+,ill,gert-
~er dP p<c~trn~•ns kksrrt: f~ntitif~
th t ut ,:~~,t tth rrtt t l,ay'ing
~jiu)nTi: ~ ~ ~~ n fiitt
4~Fr,~t t.,, t. + ,i.;n.~ ~. ,;
li. t (! ' :. ~a• ,: ..
Iir. you know, I>fo~le likeyou
<+rul nit..
f)€`tu'r f~ntitie5 e~etnln.
from lsrolx t~ty taxes ~: hich
i~-tiuld In ,hit by tltf> tc~tc}t€~<~
i-x~4 :u:tK; ~u-e cnut<•hc~ altrt
~omf~ nisnprotit. org.u)~zrt-
•1;)r ~~,, ~~hich are suplh~rtt~fl iry~
r~li~xxts <utd f•ls<uital)1e E~un-
triE,•tnot~.~ ~ ti~otct the isullli~'
liu t:ncs~ti, lxrfrl>le like ycxt
grit me:: _ _
'fhe wav it's explained ts~
me, 1'~s cants oI' even' t~ao
celtl~ aener.~tted by the prO-
po,~~c.l fc'E:tax rvoulfi lx used
f`or putilic• safety: 1fie other
half'< ettt i5 rc',~uired fti Ire
tt5rtf tier adrttuti~str<ttit>tt trots.
(Atxi, it federal stmtulusftimd-
ictt; is obtainexi a 5~na11 I}art of
the fraiichisr~ fc~, could get to
paying off e~ris-ting t K xlfls.
The only j7i),Sitita aspc'Ct
of the fi:~ttr hi5e fE~fs i.~~: is the
city tltiing tht~. income io hire
hacli~ tttf~led ttlflittc,ttaf€re-
pit; •, ~,i }n 1 .~,tflx~ ;.
:~..tvt~ ut.tt.:i)uiu~.~t~ah-
u r4r1 tl ~- u4 h:L b"aL'~s•
. t.
>< < ;;ut c , i~,,tc
::. '~~t
n('f~c LS tcl rte the brst tine items
ftnutcxl fi~pm thc~ tx)t) ~f they
city: financial l:t)utget. 'Eo
shot. c•lt<t~tgt~ put,lic Safety in
[lte t it~~ s genf~rsl fi~rul t ruflgE~,,
aru? rt~tt°n <tttc•mht tv firtia
tlx>st~ tc>p priority ttcf,>~ with
<z<Id +)ti ::tkf.~lf't.S lti f#tt
uu«~tti~= <utd coticttf•tt;t~due-
tive precedent fer tttt~ ciCy
council to Berk.
,'`,1 lease a4 damat~ng as
attythin~ else, adopting a fran-
chise fee would sirrt~ly add w
Iowa f~`lty'6 ailtl-~3lLSit'ieSs rejJ-
utation Presently, it takes at
Ieast a lit#le inv~on or
baei escperienees to learn
<slxaut our cruet-regulation.
But with a franchise feeltax,
all a business or industay
irrter~sted in coming or
remaining in lows City has to
tla is look at the franchise fee
and realize it"s arc automatic
increase in the cast of gas and
eleetxic energy here.
~'~ h~anchi.~ f~ ias not a gift
horse. It's a wolf ht sheep s
Clotl3iXtg.
Writers' group member Bob
El{iott is a former member of the
1n~va City Coune'st.
~.d
Marian Karr
From: Karen Kubby [kubby@pobox.com]
Sent: Thursday, October 22, 2009 10:53 AM
To: Council
Subject: franchise fee
City Council,
Downtown businesses and the Downtown Association are creating a lot of new ideas and
energy to keep Iowa City's major commercial hub alive and well. We have come together in
constructive and significant ways in the past year the likes of which have not been
experienced in decades.
In the near future, a proposal to the City of Iowa City will be forthcoming outlining a
partnership for the future of marketing downtown. If the franchise fee is going to be
implemented, I would like to see the wording of the current ordinance changed so that this
could be a potential funding source for such a partnership. I am requesting that the word
"infrastructure" be removed from behind industrial and commercial, so that a broader set
of investments/partnerships can be implemented through the franchise fee.
I have asked the City Attorney to let me know if removing this word would be considered a
significant change to the ordinance or not.
Thank you for considering this amendment to the ordinance in order to keep a funding door
open for a broader set of investments in industrial and commercial development in Iowa
City.
Karen Kubby
Dawn's Hide & Bead Away
Jewelry, Beads, and Instruction
Iowa City, IA 52240
(319) 338-1566 phone
(319) 688-2847 fax
www.dawnsbeads.com
since 1987 220 E. Washington St.
1
Page 1 of 1
Marian Karr
From: George Connell [gconne1152240@gmail.com]
Sent: Tuesday, October 27, 2009 7:25 AM
To: Council
Subject: franchise tax and budget
To the City Council:
Just a few thoughts to pass on as you complete your deliberations on this important issue:
1. Cedar Rapids, in the middle of one of the most costly disasters a city has ever endured in the U.S.,
has recently imposed a franchise tax of.....1%, not the 2% proposed in Iowa City.
2. There is no evidence that Coralville and North Liberty, our partners but also our competitors for
locating business and industry, are contemplating this new tax. Companies look at the bottom line when
they choose their locations.
3. The County is asking their departments to submit cost reduction proposals. I have not heard any
similar effort directing City departments to do the same. It appears most of the Council's deliberations
focus on new taxes (sales and franchise). Can you possibly believe that there is no waste in city
government?
4. It appears there is no City effort to arrive at creative new ways of supplying services. Always full-
time professional firefightters and police officers with their ever rising pension costs. No sharing of
personnel within departments. No use of reserve public safety officers which could come in very handy
during disasters such as the flood in traffic and crowd control.
5. Is there no recollection of fairly recent gas spikes where people were paying $300 and more in
monthly heating bills? There is no cap on this franchise tax. This will be a windfall to the City, but at
what cost of good will from its citizens?
In general, I find the talk of additional taxation upon Iowa City residents to be tone-deaf to the realities
of living expenses in Iowa City today. I urge your careful consideration before this very permanent tax
is passed., and that it you decide to pass it, it is the bare minimum and isn't a windfall to City
administrators. I recall seeing a videotape of the Council chuckling at the prospect of passing this tax
several months ago, referring to it as a "gift from the Governor". I hope this early giddiness has settled
into a more serious deliberation of this issue. Thank you.
G. Connell
Iowa City
10/27/2009
Iowa City Area Development Group
November 2, 2009
Honorable Regenia Bailey & Iowa City Council Members
410 E. Washington Street
Iowa City, Iowa 52240
Dear Mayor Bailey and Council ~ -
.. s
The Iowa City Area Development Group recognizes the need of the city counclto obta n
input from its community-minded businesses before it moves forward with crit~~h~ ~~'
decisions having broad impacts on commercial and industrial companies and tl~i~~ + ,~
employees. With that in mind, ICAD Group would like to submit information tom ours
. ~;
interstate commerce clients as the council considers the implementation of a utility
franchise fee.
First, ICAD Group is in full support of the city's investment in critical infrastructure to
support interstate commerce activities. We commend the council and staff for their
decisions to fund the new fire station, as well as the considerable investment in the new
wind energy supply chain campus. And, as we continue to collect data regarding the
community from our existing industry interviews, we will be certain to share with you
any significant infrastructure needs required to maintain and grow their businesses in
Iowa City.
Regarding the proposed franchise fee, ICAD Group first heard some concern, from a few
of its clients, this summer during data collection for its annual existing industry report.
Once a specific response level was reached regarding the franchise fee, ICAD Group
surveyed its twenty-nine interstate commerce clients in Iowa City to gauge their support
or opposition to this proposal.
Eleven companies (91% of respondents), representing more than 4,335 employees,
responded immediately with their opposition to this increased tax, many noting serious
concerns with any increase in expenses at a time when corporate decision makers are
weighing consolidation of operations and significant cost cutting measures. Also shared
with us was the continued concern that their industrial and commercial facilities already
pay a higher percentage of property tax than residential and agriculture properties. One
Group employer indicated support for the franchise fee, and their business represents 2% of all
3zs E.wa5ni~9to~ st. interstate commerce employees in the community.
Suite 100
P.O.Box2567 Responses from local manufactures estimated that the franchise fee would increase their
'oWaaty,iOWa utility bills by more than $350,000; nearly 72% of the total estimated amount for
szzaa-zse~ industrial-billed users in Iowa City.
It is also important to note that the average annual wage and benefits paid by these
companies is approximately $58,400, and these companies have plans to hire more
PH: 319/354-3939 www.iowacityareadevelopment.com pax:319/338-9958
than 175 people during the next few years. The annual payroll, excluding benefits, for
our clients who have responded that they do not support the franchise fee, is in excess of
$185 million annually.
Given the tremendous economic impact Iowa City's interstate commerce companies have
on industrial and commercial property taxes, as well as employment that impacts
residential property taxes and retail sales taxes; Iowa City Area Development Group
would respectfully recommend that the city council delay their vote on the franchise fee
until all alternative measures are researched. We recognize these are difficult economic
times for government and business, and would welcome the opportunity to continue
working with you to find ways to meet critical city functions that support the
maintenance and growth of the interstate commerce businesses that are the underpinnings
of any economy.
Sincerely,
....~..~
Joe Raso, Pr 'dent
Development Group, Inc.
. ~ G
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NOTICE OF PUBLIC HEARING
AMENDMENT OF CURRENT CITY BUDGET
Form 653.C1
The City Council of Iowa City in JOHNSON County, Iowa
will meet at Emma Harvat Hall, City Hall
at 7:00 On November 2, 2009
(hour) (Date)
,for the purpose of amending the current budget of the city for the fiscal year ending June 30, 2010
(year)
by changing estimates of revenue and expenditure appropriations in the following programs for the reasons
given. Additional detail is available at the city clerk's office showing revenues and expenditures by fund type
and by activity.
Total Budget
as certified
or last amended
Current
Amendment Total Budget
after Current
Amendment
Revenues & Other Financings Sources
Taxes Levied on Property 1
45,393,198
,.
0
45,393,198
Less: Uncollectted Property Taxes-Levy Year 2 0 0 0
Net Current Property Taxes 3 45,393,198 0 45,393,198
Delinquent Property Taxes 4 0 5,000 5,000
TIF Revenues 5 2,838,990 0 2,838,990
Other City Taxes 6 1,587,855 7,925,610 9,513,465
Licenses & Permits 7 1,325,023 25,000 1,350,023
Use of Money and Property 8 3,164,429 119,121 3,283,550
Intergovernmental 9 24,410,487 135,110,306 159,520,793
Charges for Services 10 39,592,426 17,622 39,610,048
Special Assessments 11 0 0 0
Miscellaneous 12 5,755,801 2,019,766 7,775,567
Other Financing Sources 13 61,547,386 50,700,479 112,247,865
o a evenues an er ources
Expenditures & Other Financings Uses
Public Safety 15
18,749,790
913,090
19,662,886
Public Works 16 13,297,427 282,119 13,579,546
Heafth and Social Services 17 0 0 0
Culture and Recreation 18 11,722,570 132,328 11,854,898
Community and Economic Development 19 5,500,025 27,568,693 33,068,718
General Government 20 8,328,312 -8,777 8,319,535
Debt Service 21 13,146,244 36,300 13,182,544
Capital Projects 22 20,290,114 76,745,295 97,035,409
o a overnmen c ivi ies xpen i ures
Business Type /Enterprises 24 49,455,725 92,817,256 142,272,981
o a ov c svi ses usiness xpen s ures 140,490,213 198,486,304 338,976,517
Transfers Out 26 51,361,618 39,215,029 90,576,647
Total Expenditures/Transfers Out 27 191,851,831 237,701,333 429,553,164
Excess Revenues 8 OtherSources Over
(Under) Expenditures/Transfers Out for Fiscal Year 28 ............
-6,236,236 ..........
-41,778,429 .........
-48,014,665
Continuing Appropriation 29 0 N/A 0
Beginning Fund Balance July 1 30 152,412,538 0 152,412,538
Ending Fund Balance June 30 31 146,176,302 -41,778,429 104,397,873
Explanation of increases or decreases in revenue estimates, appropriations, or available cash
Amend for continued appropriation of unexpended budget authority from FY2009 projects andior operations;
personnel expense for the Joint Emergency Communications Center; estimated sales tax revenue; fee
increases and reduced appropriations as prioritized by City Council and the City Manager to balance the
FY2010 budget; receipt and expenditure of flood recovery grants and programs; proceeds and debt service
from General Obligation and revenue bond refundings.
There will be no increase in tax levies to be paid in the current fiscal year named above. Any increase in
expenditures set out above will be met from the increased non-property lax revenues and cash balances not
budgeted or considered in this current budget. This will provide for a balanced budget.
Marian K. Karr
City Clerk
r
~~~:0r CITY C7F IOWA CITY
~Ir~ ~'~
m.- RANDOM
M ~M~
DATE: October 28, 2009
TO: Dale Helling, Interim City Manager
City Council
FROM: Leigh Lewis, Management Analyst /Finance
RE: FY2010 Budget Amendment
Included on the agenda this week is a resolution amending the FY2010 budget, which
includes the following revisions:
^ Estimated Local Option Sales Tax revenue;
^ Personnel expense for the Joint Emergency Communications Center;
^ Fee increases and reduced appropriations as prioritized by City Council and the
prior City Manager to balance the FY2010 budget;
^ Continued appropriation of unexpended budget authority for FY2009 projects
and/or operations;
^ Receipt and expenditure of flood recovery grants and programs;
^ Proceeds from and debt service on General Obligation and revenue bond
refundings.
Additional detail by fund type is provided on pages 1-3 of the attached, as required by the
State of Iowa. Pages 4-8 identify specific amendments within each of the revenue and
expenditure categories, as summarized on the resolution.
11-02-09
10
If you have any questions prior to the Public Hearing, please contact Finance Director
Kevin O'Malley at 356-5053 or me at 356-5052.
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